The Figure Given Below Depicts the Foreign Exchange Market for British

question 56

Multiple Choice

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

-Suppose purchasing power parity exists in the car stereo market in the United States and Australia. If a car stereo costs $230 in the United States and the exchange rate is $1 = $AUD1.67, the same car stereo may be purchased in Australia for approximately:

• A)$AUD 138.
• B)$AUD 230.
• C)$AUD 2,300.
• D)$AUD 384.
• E)$AUD 108.

---

Definitions:

Irrational Fears

Unreasonable, excessive fears of objects or situations that pose little to no actual danger.

Persistently Preoccupy

Refers to constantly being dominated or engrossed by a particular thought or concern.

Agoraphobia

A fear or anxiety disorder where the sufferer perceives the environment as too open, crowded, or unsafe, leading to avoidance of various places or situations.

Overwhelmed

A state of feeling unable to cope due to the intensity of emotions or the amount of stress or information.