The Current Indirect Exchange Rate Is 12 Pesos Per Dollar

question 85

Multiple Choice

The current indirect exchange rate is 12 pesos per dollar.The anticipated annual inflation rate is 6% in the United States and 14% in Mexico.If the cash inflow in pesos is 50,000 in one year,what are the 50,000 pesos worth in U.S.dollars after conversion from pesos to dollars using the forward exchange rate?

• A)$3,480.78
• B)$3,874.27
• C)$3,882.13
• D)$3,983.78

---

Definitions:

Peptidoglycans

A polymer consisting of sugars and amino acids that forms a mesh-like layer outside the plasma membrane of most bacteria, providing structural support and shape.

Archaea

One of the two prokaryotic domains. The absence of peptidoglycan in their cell walls sets them apart from the bacteria. Compare with bacteria.

70S Ribosomes

Ribosomes typical in prokaryotes and mitochondria, involved in the synthesis of proteins, comprised of a 50S and a 30S subunit.

Crenarchaeota

A phylum of Archaea that includes thermophilic, acidophilic, and psychrophilic microbes, often found in extreme environments.