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If the Direct Price of the Dollar Is DM2

question 19

Multiple Choice

If the direct price of the dollar is DM2.5 in 1990 Frankfurt and transaction costs were .4% of the amount transacted,then the minimum- maximum direct quotes for the DM in New York were:


Definitions:

Price

The amount of money expected, required, or given in payment for something.

Payment

The transfer of money, goods, or services in exchange for a product, service, or to satisfy an obligation.

Fixture

A fixture is an item that was originally personal property but has been attached to real property in such a way that it is legally considered a part of the real property.

UCC

Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, including sales, banking, and leases.

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