Suppose one British pound can purchase 2.12 US dollars today in the foreign exchange market,and currency forecasters predict that the US dollar will depreciate by 22.0% against the pound over the next 30 days.How many dollars will a pound buy in 30 days?

A) 2.59
B) 2.63
C) 1.74
D) 2.04

Question

maruf hasan · Accepted Answer

Final Answer : A, Explanation :  If the US dollar depreciates by 22.0% against the pound, it means the pound will increase in value by the same percentage relative to the dollar. The new value can be calculated as 2.12 * (1 + 22.0%) = 2.12 * 1.22 = 2.5864, which rounds to 2.59, making option A correct.

Suppose one British pound can purchase 2.12 US dollars today in the foreign exchange market,and currency forecasters predict that the US dollar will depreciate by 22.0% against the pound over the next 30 days.How many dollars will a pound buy in 30 days?

A) 2.59
B) 2.63
C) 1.74
D) 2.04

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Learning Objectives

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Suppose one British pound can purchase 2.12 US dollars today in the foreign exchange market,and currency forecasters predict that the US dollar will depreciate by 22.0% against the pound over the next 30 days.How many dollars will a pound buy in 30 days?A) 2.59B) 2.63C) 1.74D) 2.04

Definitions

Learning Objectives

Learning Objectives

Related questions

Suppose one British pound can purchase 2.12 US dollars today in the foreign exchange market,and currency forecasters predict that the US dollar will depreciate by 22.0% against the pound over the next 30 days.How many dollars will a pound buy in 30 days?

A) 2.59
B) 2.63
C) 1.74
D) 2.04