An investor is examining the exchange rates in New York and London. For simplicity, the rates are all quoted versus the U.S. dollar. In New York: The euro rate is $1.30. The pound rate is $0.89. The Swiss franc rate is 1.18 SF.

In London: The euro rate is $1.27. The pound rate is $0.93. The Swiss franc rate is 1.20 SF.

A firm wants to buy equipment from a Swiss firm. Should the firm use its New York or London account?

	A.	London
	B.	New York
	C.	Either New York or London

Long-term inflation will cause a country's currency to

	A.	either appreciate or depreciate
	B.	depreciate
	C.	appreciate