Upon Arrival in Chile,Karen Exchanged $1,000 of U

question 5

Multiple Choice

Upon arrival in Chile,Karen exchanged $1,000 of U.S.currency into 480,000 Chilean Pesos.While returning after her two-month visit,she exchanged her remaining 50,000 Pesos into $100 of U.S.currency.What amount of gain or a loss did Karen experience on the 50,000 pesos she held during her visit and converted to U.S.dollars at the departure date?

• A)Loss of $4.
• B)Gain of $4.
• C)Loss of $6.
• D)No gain or loss.

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Definitions:

Originator

The individual or entity that creates or initiates something, often used in the context of loans and financial transactions.

Beneficiary

An individual or entity entitled to receive benefits or assets from a will, trust, insurance policy, or other legal arrangement.

Stale Check

A check that is presented for payment after a certain period (typically six months) from its issue date, leading to its potential refusal by the bank.

Settlement

An agreement reached between parties in a dispute to amicably resolve their differences, often involving a compromise and the cessation of further legal action.