Intermediate (Problems 4-7)

4. (LO 1) Karen operates a small foreign currency exchange business. She begins each day with three boxes of cash. Each box contains 10 000 units of Canadian currency and IO 000 units of another currency. Table 11.8 shows Karen's holdings of each currency at the end of a day"s business.

\f1.04 S. 1.02 Price of Canadian dollars In U.S. dollars 1.00 0.98 D 20 40 GO 100 Quantity of Canadian dollars (billions) FIGURE 11.9