The Following Table Provides Nominal Exchange Rates for the U

question 112

Multiple Choice

The following table provides nominal exchange rates for the U.S. dollar. $$\begin{array} { l c c } { \text { Country } } & \text { Foreign currency/dollar } & \text { Dollar/foreign currency } \\\text { Poland (zloty) } & 4.367 & .229 \\\text { South Africa (rand) } & 6.944 & .144\end{array}$$ Based on these data, the nominal exchange rate equals approximately ______ zloty per South African rand or, equivalently, ______ rand per Polish zloty.

• A) 1.590; 0.629
• B) 0.629; 1.590
• C) 0.021; 47.640
• D) 47.640; 0.021

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Definitions:

Working Stock

Working stock refers to the inventory that is readily available for use or sale, excluding any safety stock kept in reserve to cover potential shortages.

Collection Period

The average number of days it takes for a company to collect payments owed by its customers.

Bad Debts

Money owed to a company that is unlikely to be paid by the debtor, often resulting in a write-off for the company.

Just-In-Time

An inventory strategy companies employ to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs.