Assume the Following Information: Also Assume That a U

question 12

Multiple Choice

Assume the following information: Also assume that a U.S. exporter denominates its New Zealand exports in NZ$ and expects to receive NZ$600,000 in 1 year. You are a consultant for this firm.
Using the information above, what will be the approximate value of these exports in 1 year in U.S. dollars given that the firm executes a money market hedge?

• A) $238,584.
• B) $240,000.
• C) $234,000.
• D) $236,127.

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Definitions:

Improved Technology

Enhancements or innovations in technology that increase productivity, efficiency, or performance in various sectors.

Excise Tax

A tax levied on specific goods, services, or transactions.

Supply Curve

A graphical representation showing the relationship between the quantity of goods that producers are willing to sell at different prices during a certain period.

Quantity Supplied

The measure of products or services that producers are willing and able to make available for sale at a predetermined price throughout a certain time.