Suppose Stackpool Inc

question 28

Multiple Choice

Suppose Stackpool Inc.had inventory in Britain valued at 240,000 pounds one year ago.The exchange rate for dollars to pounds was 1£ = 2 U.S.dollars.This year the exchange rate is 1£ = 1.82 U.S.dollars.The inventory in Britain is still valued at 240,000 pounds.What is the gain or loss in inventory value in U.S.dollars as a result of the change in exchange rates?

• A) −$240,000
• B) −$43,200
• C) $0
• D) $43,200
• E) $47,473

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Definitions:

Uplift

The vertical elevation of the Earth's surface due to natural causes, such as tectonic movements or volcanic activity.

Oceanic Crust

The relatively thin part of the Earth's crust that underlies the ocean basins, composed largely of basalt and gabbro.

Thickness

The measure of how broad or wide a layer or feature is from one side to the other, often used in geological contexts to describe rock layers.

Regional Elevation

the average height of a specific, extensive area above sea level, often determining its climate and ecosystem.