Currencies â U.S. dollar foreign-exchange rates. May 5, 2011
Country/currencyâ¦â¦â¦..in US$..............per US$
British Poundâ¦â¦â¦â¦â¦â¦.1.5347â¦â¦â¦â¦â¦.0.6516
Norwegian Kronerâ¦â¦â¦.0.1690â¦â¦â¦â¦â¦..5.9173
Thai Bahtâ¦â¦â¦â¦â¦â¦â¦â¦..0.0310â¦â¦â¦â¦â¦..32.250
The price of an ounce of gold in New York is $1,950, and the price of the same ounce of gold in London is 1,285 British Pounds. Using the exchange rates above, what would you predict would occur in well-functioning markets based upon this information?
a. The price of gold will fall in New York and will stay the same in London
b. The price of gold will stay the same in both New York and London
c. The price of gold will rise in New York and fall in London
d. The price of gold will fall in New York and rise in London
e. The price of gold will rise in New York and will stay the same in London
Currencies â U.S. dollar foreign-exchange rates. May 5, 2011
Country/currencyâ¦â¦â¦..in US$..............per US$
British Poundâ¦â¦â¦â¦â¦â¦.1.5347â¦â¦â¦â¦â¦.0.6516
Norwegian Kronerâ¦â¦â¦.0.1690â¦â¦â¦â¦â¦..5.9173
Thai Bahtâ¦â¦â¦â¦â¦â¦â¦â¦..0.0310â¦â¦â¦â¦â¦..32.250
The price of an ounce of gold in New York is $1,950, and the price of the same ounce of gold in London is 1,285 British Pounds. Using the exchange rates above, what would you predict would occur in well-functioning markets based upon this information?
| a. | The price of gold will fall in New York and will stay the same in London | |
| b. | The price of gold will stay the same in both New York and London | |
| c. | The price of gold will rise in New York and fall in London | |
| d. | The price of gold will fall in New York and rise in London | |
| e. | The price of gold will rise in New York and will stay the same in London |
