A currency question

#1

hi, guys,

i got a currency question. i don’t think any currency is more valuable than others. so i guess the answer is cannot say. am i right?
any tips? many thanks!

#2

a very strange question:) they say “available in all 3 currencies” but give 4 currencies to choose from :stuck_out_tongue:

anyway, i would go for ‘cannot say’.

however, Euro is the only currency which is depreciating against Sterling here. so one might choose to pay with Euro to save Yen and Dollar which are going up in value.

#3

thank you rshat!
this is a question in a real test. maybe it’s a normal way they want to confuse candidates.

i agree the your Euro answer.

Since three months exchanging rates have been given to compare, Euro is the best choice.
if we only knew the january’s rates, then i choose cannot say.

#4

but surely since the debt is in sterling, the best currency to pay them in is sterling too. It’s questions like these that make me hate SHL. They’re not difficult in the way the GRE or GMAT is difficult, they’re just deliberately confusing and ambiguous, so you have to guess at what they mean by the question, rather than by working out what the answer is.

I agree it’s most likely that the Euro seems like a good answer, but then, if we can assume that Frontier has funds in sterling as well as in the other three currencies (otherwise why would it be an answer choice), surely sterling would be the best way to resolve a sterling debt? But then, the dollar is a global reserve currency, whilst the others are not - whilst the Euro has obviously depreciated over the next six months, so, from a strategic point of view, it would be wise for Frontier to divest themselves of these funds - but won’t it cost to buy sterling with their Euro funds, especially when they have sterling they could just pay the debt off with anyway. Again, this is why I HATE SHL! They’re not testing anything, they just phrase questions in a stupid way, making it impossible to come out with a logical answer.

#5

Good points yuh!
I am afraid you’ve answered this one. Watch out, it looks similar but the question is different. It says Frontier has ALL currencies rather than THREE!

#6

I would try to get rid of my EURs now as EUR is depreciating. THe value of my EUR tomorrow will not be the same as it is now and will be lower in terms of Sterling. So Get rid of EUR.

The other currencies are appreciating against GBP. why not to hold them and sell them later to receive more GBPs when it reaches parity or lower.

So, personally i think, answer should be EUR.

But if you do not look beyond Jan1 then you cannot say which currency should be used today as whichever you pay with you spend the same amount of GBP.

Very speculative question and ambiguous. but i would go with the first option if it is a real stuff.