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If You Have a Commitment to Pay a Friend in Britain

question 112

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If you have a commitment to pay a friend in Britain 1,000 pounds in 30 days,you could remove the risk of loss due to the appreciation of the pound by:


Definitions:

Average Price

The mean price of a good or service, calculated by dividing the total revenue by the quantity sold.

Equilibrium Price

The cost at which the amount of a product consumers want to buy matches the amount producers are willing to sell, leading to equilibrium in the market.

Gigabyte

A unit of digital information storage equivalent to approximately 1 billion bytes (1,000 megabytes).

Computer Memory

A device or system used to store digital information for immediate use in a computer or related computer hardware.

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