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If a Kilogram of Coal Costs €1

question 92

Multiple Choice

If a kilogram of coal costs €1.5 in Germany and $1 in the United States,the law of one price calculates the expected exchange rate between the euro and the dollar to be ________.


Definitions:

Securities Dealers

Financial professionals who buy and sell securities on behalf of their clients, and sometimes for their own accounts.

Stock Brokers

Professionals who act as intermediaries between investors and the stock market, facilitating the buy and sell transactions of stocks on behalf of their clients.

Banks

Financial institutions licensed to receive deposits and provide loans to individuals and businesses.

Primary Market Transaction

A financial transaction that occurs when a company first sells its securities directly to investors, such as through an initial public offering (IPO).

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