If 1 Euro Is Priced at $1

question 141

Multiple Choice

If 1 euro is priced at $1.25 and if 1 euro will also buy 88 Japanese yen (€1 = ¥88) , in equilibrium, with no arbitrage opportunities, how much is the cross rate between the yen and the dollar (yen-dollar rate) ?

• A) ¥150/$
• B) ¥70.4/$
• C) ¥20/$
• D) ¥5/$

---

Definitions:

Latent Learning

Learning that occurs without any obvious reinforcement of the behavior or associations that are learned until there is a reason to demonstrate it.

Conditioned Reinforcer

A stimulus that acquires its reinforcing power through association with a primary reinforcer, used to condition a response.

Primary Reinforcer

A naturally reinforcing item or outcome, like food or water, that does not require learning to become desirable or rewarding.

Operant Conditioning

A learning paradigm that tailors the intensity of a conduct through positive feedback or negative repercussions.