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Alex17521 [72]
3 years ago
15

pdf Suppose that the pound is pegged to gold at £20 per ounce and the dollar is pegged to gold at $35 per ounce. This implies an

exchange rate of $1.75 per pound. If the current market exchange rate is $1.80 per pound, how would you take advantage of this situation? Hint: assume that you have $350 available for investment.
Business
1 answer:
Tasya [4]3 years ago
6 0

Answer:

1) Buy 10 ounces of gold with the 350 dollars

2) Sell the 10 ounces of gold for £200

3) Exchange £200 for 360 dollars

Explanation:

Due to the difference between the exchange rate in gold and currency, a 2.1%  (1.80 / 1.75) advantage can be obtained.  

You start in the gold market with 350 dollars which are equal to 10 ounces of gold which are equal to £200. This according to the gold prices, witch generate a 1.75 exchange rate.

Then you go to the financial market where the exchange rate is larger (1.80) and with the £200 you get 360 dollars.  

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3 years ago
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Suppose Larry's Lariats produces lassos in a factory, and uses nine feet of rope to make each lasso. The rope is put into a mach
zloy xaker [14]

Answer:

C. None of these would be considered a fixed cost.

Explanation:

Fixed cost is a cost that do not vary with any level of output. It is a cost that does not change irrespective of an increase or decrease in a company's production output.

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As in the case above,

•The cost of rope would form part of the total cost (which is sum of all the cost expended by a company in certain production output) and NOT a fixed cost because the rope is used to prepare the final packaged product.

•The packaging material would also form part of the total cost. The cost expended on this material is what makes it a total cost as it forms part of the final production output.

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7 0
3 years ago
Through self-guided internet research, the intellectually curious mind can find many examples of potential rewards in business.
lina2011 [118]

Through self-guided internet research, the intellectually curious mind can find many examples of potential rewards in business. Add two (2) or more examples of Business Rewards to this list:

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A deep sense of satisfaction

Being the one in control

Providing sustainable jobs and income for others

The opportunity to give back / community responsibility

The satisfaction of excellent customer feedback

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After conducting additional research, what other business rewards can you add here?

Answer:

1. Independence and Flexibility

2. Learning opportunities

Explanation:

The rewards of having a business are tremendous and cannot be overemphasized. Hence, asides from the listed business rewards, here are two additional business rewards

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2. Learning Opportunities: business activities allows business owners to see and learn how certain aspects of the business is getting done. Even when there are employees to perform those functions, business owners still have the opportunity to see, learn, and understand how those activities are being carried out.

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