In the USA Digital Camera Costs $200

question 40

Multiple Choice

In the U.S.a digital camera costs $200.The same camera in London sells for 90 pounds.If the exchange rate were .50 pounds per dollar,then which of the following would be correct?

• A)The real exchange rate is greater than 1.A person in London with $200 could exchange them for pounds and have more than enough to buy the camera there.
• B)The real exchange rate is greater than 1.A person in London with $200 could exchange them for pounds but then wouldn't have enough to buy the camera there.
• C)The real exchange rate is less than 1.A person in London with $200 could exchange them for pounds and have more than enough to buy the camera there.
• D)The real exchange rate is less than 1.A person in London with $200 could exchange them for pounds but then wouldn't have enough to buy the camera.

Distinguish between spending and activity variances.

Evaluate employee wages and salaries management in budgeting.

Grasp the concept of planning budget and its importance in financial forecasting.

Understand the concept of a static planning budget and its role in performance evaluation.

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Definitions:

Recessionary Conditions

Economic circumstances characterized by negative growth, reduced consumer spending, and increased unemployment.

Discount Rate

The interest rate charged to commercial banks and other financial institutions for loans received from the central bank's discount window.

Treasury Securities

Government bonds issued by the Treasury of a country, considered low-risk investments since they are backed by the government's credit.

NYSE

The New York Stock Exchange, one of the largest stock exchanges in the world, where stocks of public companies are bought and sold.