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Assume That the Foreign Exchange Market Is in Equilibrium and There

Question 166

Multiple Choice

Assume that the foreign exchange market is in equilibrium and there are no arbitrage opportunities. If the market price of 200 rubles is $1, and the market price of one yen is 2 rubles, how many yen can you buy with $4?


A) 200
B) 2,000
C) 400
D) 4,000
E) 100

Correct Answer:

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