The Figure Below Shows the Demand (D) and Supply (S)

question 79

Multiple Choice

The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4

-If the price of an ounce of gold is 200 ZARs in South Africa and $75 in Canada, what will be the South African Rand (ZAR) per Canadian dollar (C$) exchange rate?

• A)C$1 = 4.25 ZAR
• B)C$1 = 1.75 ZAR
• C)C$1 = 2 ZAR
• D)C$1 = 2.67 ZAR
• E)C$1 = 4 ZAR

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Definitions:

Corn

A cereal grain primarily used as livestock feed, biofuel, and as a staple food in many parts of the world, significant in agricultural economics.

Cross-hedging

An investment strategy used to manage risk by investing in assets indirectly related to the primary exposure.

Hedging

A risk management strategy used to limit or offset the probability of loss from fluctuations in the prices of commodities, currencies, or securities.

Closely Related

Closely Related describes items, individuals, or concepts that are closely connected in terms of characteristics, functions, or relationships.