In 1972 in Kelowna, BC, One Could Buy Model Rocket

question 135

Multiple Choice

In 1972 in Kelowna, BC, one could buy model rocket engines for $1.50. If those same engines cost $3.00 today, which of the following sets of CPI's would make the engine prices in today's dollars the same for both years?

• A)60 in 1972 and 100 today
• B)60 in 1972 and 110 today
• C)60 in 1972 and 120 today
• D)60 in 1972 and 130 today

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Definitions:

Price Fluctuations

Price fluctuations refer to variations in the selling price of goods and services over a period, influenced by market conditions.

Borrowing Costs

Expenses incurred by an entity for borrowing funds, including interest, arrangement fees, and other related costs.

Future

A standardized financial contract obligating the buyer to purchase, and the seller to sell, a specific asset at a predetermined future date and price.

Transactions Exposure

The risk that a company's financial performance or position may be affected by fluctuations in exchange rates impacting transactions in foreign currencies.