The "Big Mac Theory of Exchange Rates" Tests the Accuracy

question 105

Multiple Choice

The "Big Mac Theory of Exchange Rates" tests the accuracy of purchasing power parity theory.In July 2013,The Economist reported that the average price of a Big Mac in the United States was $4.56.In India,the average price of a Big Mac at that time was 90 rupees.What is the "implied exchange rate" between the yen and the dollar?

• A)0.05 rupees per dollar
• B)19.74 rupees per dollar
• C)46.72 rupees per dollar
• D)410.4 rupees per dollar

Understand the principles and applications of behavior therapy.

Identify and describe various techniques used in behavior therapy, such as flooding, systematic desensitization, and counterconditioning.

Recognize the role of cognitive therapy in treating psychological disorders and its focus on changing unproductive ways of thinking.

Differentiate between behavior therapy and cognitive therapy.

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Definitions:

Deposited

Placing money into a financial account or institution for safekeeping or investment purposes.

Collection Float

The time period between when a check is deposited and when the funds are available in the payee’s account, reflecting the bank’s processing time.

Banking System

denotes the network of institutions that provide financial services, including deposits, loans, and currency exchanges.

Collection Float

The time difference between when a check is deposited into a bank account and when the funds are made available.