A Pair of Running Shoes Costs HK$588 in Hong Kong

question 6

Multiple Choice

A pair of running shoes costs HK$588 in Hong Kong, but C$97.85 in Canada. If goods must be sold with one price, what is the spot rate? Ignore transportation costs for simplicity.

• A) C$0.2535 = HK$1
• B) C$0.3396 = HK$1
• C) C$0.4265 = HK$1
• D) C$0.1664 = HK$1
• E) C$0.6029 = HK$1

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Definitions:

Diencephalon

A division of the brain lying between the midbrain and the cerebral hemispheres that includes the thalamus, hypothalamus, and third ventricle.

Medulla Oblongata

The medulla oblongata is the lower portion of the brainstem, controlling vital functions such as breathing, heart rate, and blood pressure.

Midbrain

A central part of the brainstem involved in vision, hearing, motor control, sleep/wake, arousal (alertness), and temperature regulation.

Cerebral Peduncles

Structures at the base of the brain, containing nerve tracts that connect the cerebrum with other parts of the brain and spinal cord.