If the exchange rate is 0.60 British pounds per $1, a bottle of pop that costs...

Question

Question

If the exchange rate is 0.60 British pounds per $1, a bottle of pop that costs 3 pounds in Great Britain costs, in the U.S.,

$5.00

$1.80

$4.80

None of the options

business economics

Answer 1

✔ Recommended Answer

Answer #1

For 1 pound I pay 1/0.6 = 1.67 dollars. Therefore for 3 pounds I pay 3*1.67 = 5 dollars. Thus, option A

Answer 2

Similar Homework Help Questions

One year ago, Mason Manufacturing, Inc. had inventory in Britain valued at 240,000 British pounds sterling....

One year ago, Mason Manufacturing, Inc. had inventory in Britain valued at 240,000 British pounds sterling. The exchange rate for dollars to pounds was 1 pound = 2 U.S. dollars. This year, the exchange rate is 1 pound = 1.82 U.S. dollars. The inventory in Britain is still valued at 240,000 British pounds. What is the gain or loss in inventory value in U.S. dollars as a result of the change in exchange rates?
The current British pound exchange rate is 1.15 pounds per dollar. If British Inflation is expected...

The current British pound exchange rate is 1.15 pounds per dollar. If British Inflation is expected to be 3 and US Inflation 4%, what is the indirect forward rate for the British pound 5 months from now? 0.95 1.04 0.86 1.26 1.15
QUESTION 24 Suppose the U.S. dollar-British pound exchange rate is quoted as USD2.00/GBP. This is a:...

QUESTION 24 Suppose the U.S. dollar-British pound exchange rate is quoted as USD2.00/GBP. This is a: direct quotation in Great Britain. indirect quotation in United States. direct quotation in the United States. direct quotation in Great Britain and an indirect quotation in the United States,

QUESTION 15 Suppose the U.S. dollar-British pound exchange rate is quoted as USD2.00/GBP. This is a:...

QUESTION 15 Suppose the U.S. dollar-British pound exchange rate is quoted as USD2.00/GBP. This is a: direct quotation in Great Britain. o indirect quotation in United States. direct quotation in the United States. O direct quotation in Great Britain and an indirect quotation in the United States.
1. In July 2019, the price of a Big Mac in Great Britain was 3.29 pounds....

1. In July 2019, the price of a Big Mac in Great Britain was 3.29 pounds. The exchange rate between the British pound and US dollar was 0.80 pounds/dollar. a. What would be the cost of a Big Mac in Great Britain in US dollars (convert the price in British pounds to US dollars)? b. The current cost of a Big Mac in the US is $5.74. If the law of one price holds for the Big Mac in the...
You can exchange $1 for either .9146 euro or .7249 British pounds. What is the cross-rate...

You can exchange $1 for either .9146 euro or .7249 British pounds. What is the cross-rate in terms of pounds per euro?

Question A the current exchange rate of $1.40 per British pound, a one-day pass to Worldwide...

Question A the current exchange rate of $1.40 per British pound, a one-day pass to Worldwide Theme Park of 13 Florida sells for 45 pounds at travel agencies throughout Great Britain. If the exchange rate increases to $1.70 per pound, what will happen to the price of a one-day pass sold in Great Britain? Select one: O a. The price will be unchanged. O b. The price will fall to 37 pounds. O c. The price will increase to 54...
Question 31 The current British pound exchange rate is 1.45 pounds per dollar. Bishonis expected to...

Question 31 The current British pound exchange rate is 1.45 pounds per dollar. Bishonis expected to be and Us on what is the direct forward rate for the besh pound & months from now 0 121 1.7 161
2. You are given the following information. The current dollar-pound exchange rate is $2 per British...

2. You are given the following information. The current dollar-pound exchange rate is $2 per British pound. A basket of goods that costs $100 in the US costs $90 in the United Kingdom (UK). For the next year, the Fed is predicted to keep U.S. inflation at 2% and the Bank of England (the UK’s central bank) is predicted to keep U.K. inflation at 3%. (a) What is the expected U.S.-U.K. inflation differential for the coming year? (b) What is...

Boston Beanery, a U.S.-based company, establishes a branch in Great Britain in January of Year 1,...

Boston Beanery, a U.S.-based company, establishes a branch in Great Britain in January of Year 1, when the exchange rate is US $ 1.30 per British pound (£). During Year 1, the British branch generates £ 5,000,000 of pretax income. On October 15, Year 1, £ 2,000,000 is repatriated to Boston Beanery and converted into U.S. dollars. Assume the effective income tax rate in Great Britain is 19 percent. Taxes were paid in Great Britain on December 31, Year 1....