In Ireland, a Pint of Beer Costs 4 Irish Punts

question 107

Multiple Choice

In Ireland, a pint of beer costs 4 Irish punts. In Australia, a pint of beer costs 6 Australian dollars. If the exchange rate is 0.6 punts per Australian dollar, what is the real exchange rate?

• A)0.8 pints of Irish beer per pint of Australian beer
• B)0.9 pints of Irish beer per pint of Australian beer
• C)1.11 pints of Irish beer per pint of Australian beer
• D)1.25 pints of Irish beer per pint of Australian beer

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Definitions:

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period to ensure a company has sufficient liquidity.

Financial Statements

Formal records of a company's financial activities and condition, including balance sheet, income statement, and cash flow statement.

Fixed Assets

Fixed Assets, also known as non-current assets, are long-term tangible assets held for business use and not expected to be converted into cash in the upcoming year, such as buildings, machinery, and vehicles.

Sales Increase

The rise in the volume or amount of sales or services sold by a company within a particular period.