DQuestion 12 1 pts What is the exchange rate between the dollar and the British

Question

DQuestion 12 1 pts What is the exchange rate between the dollar and the British pound if a pair of American jeans costs 50 dollars in New York and 100 Pounds in London? 3.5 dollars per British pound 2 dollars per British pound 1.5 dollars per British pound 0.5 dollars per British pound O 2.5 dollars per British pound Question 13 1 pts If the goods' money prices do not change, a depreciation of the dollar against the pound makes American jeans more expensive in terms of British sweaters. O makes British sweaters cheaper in terms of American jeans. O makes British sweaters more expensive in terms of American jeans. O doesn't change the relative price of sweaters and jeans. makes British jeans more expensive in Britain. Question 14 1 pts Which of the following is not an example of a financial derivative? O futures O options O swaps O forwards O bonds

Explanation / Answer

1) What is the exchange rate between the dollar and the British pound if a pair of American jean costs 50 dollars in New York and 100 pounds in London

Solution: 0.5 dollars per British pound

Explanation: exchange rate between the dollar and the British pound = 50/100 = 0.5 dollars per British pound

2) If the goods money d not change, a depreciation of the dollar agains the pound

Solution: makes British sweaters more expensive in terms of American jeans

Explanation: A depreciation of a country's currency makes its foreign goods more expensive

3) Which of the following is not an example of a financial derivative?

Solution: bonds

Explanation: Financial derivatives refers to contracts to sell or buy underlying assets

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