You Decide to Work in London for the Next 5

question 248

Multiple Choice

You decide to work in London for the next 5 years,accumulate some savings,then move back to the United States and convert your savings from British pounds to dollars.At the time of your move,economists predict that consumers in the United States have lost their affinity for British products,and expect that this declining preference for British products will continue for the next decade.How should this influence your decision to work and save in London?

• A)You should be discouraged as the declining U.S.preference for British goods should increase the value of the pound to the dollar and decrease the value of your savings when converted to dollars.
• B)You should be discouraged as the declining U.S.preference for British goods should decrease the value of the pound to the dollar and decrease the value of your savings when converted to dollars.
• C)You should be encouraged as the declining U.S.preference for British goods should decrease the value of the pound to the dollar and raise the value of your savings when converted to dollars.
• D)You should be encouraged as the declining U.S.preference for British goods should increase the value of the pound to the dollar and raise the value of your savings when converted to dollars.

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Definitions:

Airport Exchange Kiosk

An airport exchange kiosk is a physical location within an airport where travelers can exchange their home currency for that of their destination country.

Currency P

A placeholder reference for a specific currency being discussed or analyzed, with "P" standing for the particular currency in question.

Exchange Rate

The exchange rate of one currency in terms of another.

Units

Refers to individual items or components of a product, or measures of quantity in mathematics, science, and commerce.