Assume You Can Exchange $1 for Either C$1

question 2

Multiple Choice

Assume you can exchange $1 for either C$1.1417 or ¥118.62.What is the cross-rate between the Canadian dollar and the Japanese yen?

• A)C$.009625/¥1
• B)C$.003723/¥1
• C)C$.004582/¥1
• D)C$138.2191/¥1
• E)C$135.43/¥1

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Definitions:

Free Goods

Items or services provided at no cost to the recipient, often used as promotional tools or as part of a marketing strategy to incentivize purchases or loyalty.

Yield Management Pricing

A pricing strategy used in industries with perishable goods (like airlines, hotels) that adjusts prices based on fluctuating demand to maximize revenue.

Seasonal Demand

Fluctuations in the market demand for certain products or services that occur at specific times of the year.

Yield Management Pricing

A pricing strategy that adjusts prices based on changes in supply and demand, commonly used in the airline and hotel industries.