A and B Are Neighbours

question 52

True/False

A and B are neighbours. Before A left on a holiday, he asked B to "keep an eye on his house." While A was on holidays, B noticed that A's lawn was in need of cutting and proceeded to cut the lawn. On A's return from his holiday, B demanded $10 for cutting the lawn. A and B have a binding contract for the cutting of the lawn, because A's statement constituted an offer to B to cut the lawn, which B accepted.

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Definitions:

Goods Deficit

A situation where a country's imports of physical goods exceed its exports, leading to a negative balance in trade for physical goods.

Exchange Rate

The value of one currency for the purpose of conversion to another, affecting international trade, investments, and economic relations between countries.

British Pounds

The currency of the United Kingdom, symbolized by £, and one of the major currencies traded worldwide.

Fixed Exchange Rates

An exchange rate regime where a country's currency value is tied to another currency, a basket of currencies, or another measure of value, such as gold, and does not fluctuate in the foreign exchange market.