Colombia is the world’s biggest producer of roses. The global demand for roses increases and at the same time, the central bank in Colombia increases the interest rate. In the foreign exchange market for Colombian pesos, what happens to?
a. The demand for pesos?
b. The supply of pesos?
c. The exchange rate of the peso against the U.S. dollar?
Q2 i) Suppose that four persons working in a factory are given the job of stamping expiry date on the packet of buns. Person A, who stamps 20% of packets, fails to stamp the expiry date once in every 200 packets. Person B who stamps 60% of packets, fails to stamp the expiry date once in every 100 packets. Person C who stamps 15% of packets, fails to stamp the expiry date once in every 90 packets and Person D who stamps 5% of
packets, fails to stamp the expiry date once in every 200 packets. If a buyer complains that her packet of buns does not show the expiry date, what is the probability that,
a) It was Person A who failed to stamp?
b) It was stamped by Person B or C?
c) What is the probability that a packet bought shows an expiry date and it was not stamped by B?
Sources of unemployment