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    International Economics Study Set 3
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    Exam 12: The Foreign Exchange Market
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    Suppose in London £/$ = 0
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Suppose in London £/$ = 0

Question 32

Question 32

Multiple Choice

Suppose in London £/$ = 0.5 while in New York £/SF = 0.2. The corresponding cross rate (SF/$) is


A) 2.5.
B) 0.1.
C) 0.4.
D) 0.3.

Correct Answer:

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