Exchange Rate Risk a U

question 46

Multiple Choice

Exchange Rate Risk A U.S.firm is expecting cash flows of 5 million Mexican pesos and 10 million Indian rupees.The current spot exchange rates are: $1 = 11.255 pesos and $1 = 44.864 rupees.If these cash flows are not received for one year and the expected spot rates at that time will be $1 = 10.080 pesos and $1 = 44.125 rupees,then what is the difference in dollars received that was caused by the delay?

• A)$56,000 more
• B)$56,000 less
• C)$13.265 million more
• D)$9.275 million more

Identify the relevance of tax principles in policy formulation and public administration.

Understand the basics of language development including syntax, morphemes, and two-word sentences' timing.

Comprehend the factors enhancing language development in children.

Grasp the concept of morphemes as the smallest unit of meaning in language.

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Definitions:

Marginal Rate of Substitution (MRS)

The marginal rate of substitution is the rate at which a consumer is willing to substitute one good for another while keeping the utility level constant.

Cobb-Douglas Utility Functions

A mathematical representation of consumer preferences that shows how utility depends on the consumption of different goods, characterized by constant elasticity of substitution.

Pareto Optimal

A state of allocation of resources from which it is impossible to reallocate to make any one individual or preference criterion better off without making at least one individual or preference criterion worse off.

Pure Exchange Economy

An economic model where agents trade existing goods without the production of new goods, focusing on the allocation and distribution of resources.