Assume you have $1, 000 and plan to travel from the United States to the United Kingdom. Assume further that the banks bid rate for the British pound is $1.52 and its ask rate is $1.60. Before leaving on your trip, you go to this bank to exchange dollars for pounds. How much of $1, 000 will be converted into pounds?

FINANCIAL MARKETS

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Assume you have $1, 000 and plan to travel from the United States to the United Kingdom. Assume further that the bank’s bid rate for the British pound is $1.52 and its ask rate is $1.60. Before leaving on your trip, you go to this bank to exchange dollars for pounds. How much of $1, 000 will be converted into pounds?

A	725 pounds
B	625 pounds
C	825 pounds
D	925 pounds

Explanation:

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ECONOMICS (CBSE/UGC NET)

ECONOMICS

FINANCIAL MARKETS