The Figure Given Below Depicts the Foreign Exchange Market for British

question 3

Multiple Choice

The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2

-If a bushel of corn sells for $2 in the United States and for 4,000 COP (Colombian peso) in Colombia, and if 1 dollar is worth 2,200 COP, then:

• A)the corn is 400 COP more expensive in Colombia.
• B)the corn is 400 COP cheaper in Colombia.
• C)the price of a bushel of corn equals $2 in both the United States and Colombia.
• D)the price of corn is 4,000 COP lower in Colombia than in the United States.
• E)the price of corn is $0.20 lower in the United States than in Colombia.

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Definitions:

Gas

One of the four fundamental states of matter with indefinite shape and volume, composed of molecules in constant random motion.

Gas Law

Mathematical relationships that describe the behavior of gases, relating pressure, volume, temperature, and amount of gas.

Sodium Azide

A chemical compound with the formula NaN3, used as a preservative in labs and as a propellant in airbag inflators.

Airbags

Safety devices in vehicles designed to inflate rapidly during a collision to prevent injuries to passengers.