With floating exchange rates, BOP equilibrium is restored by ...

[beccaep]

With floating exchange rates, BOP equilibrium is restored by
 
  A) trade restrictions.
  B) earnings from foreign investments.
  C) exchange rate changes.
  D) All of the above.

Question 2

What is the exchange rate between the dollar and the British pound if a pair of American jeans costs 60 dollars in New York and 30 Pounds in London?
 
  A) 1.5 dollars per British pound
  B) 0.5 dollars per British pound
  C) 2.5 dollars per British pound
  D) 3.5 dollars per British pound
  E) 2 dollars per British pound

[kristenb95]

Answer to Question 1

C

Answer to Question 2

E

[beccaep]

Thank you

[kristenb95]

No problemo