The Current Indirect Exchange Rate Is 12 Pesos Per Dollar

question 63

Multiple Choice

The current indirect exchange rate is 12 pesos per dollar.The anticipated annual inflation rate is 5% in the United States and 5% 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)$4,165.67
• B)$4,166.67
• C)$4,168.67
• D)$4,169.67

---

Definitions:

Plateau

A state of little or no change following a period of activity or progress.

Human Sexual Response

A series of physiological and emotional stages experienced by individuals during sexual activity, including phases such as arousal and orgasm.

Excitement

A state of heightened emotional arousal or enthusiasm.

Plateau

A stage where progress levels off after a period of advancement or growth.