gross. (144) :pQuote:
Originally Posted by a d e p t
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gross. (144) :pQuote:
Originally Posted by a d e p t
Glad to see you came in with your brain turned on. :DQuote:
Originally Posted by Deity
3 points.
OMG! That was the right answer?!? :eek2:Quote:
Originally Posted by a d e p t
Shadow approached one of the many bars aboard the posh 'Pinnacle II' cruise ship and overheard Jack Tar, the alleged hero of the day, spinning a yarn.
"I've been a sailor for twenty years and never experienced anything like it," said Jack. "I came out of my cabin door and heard gun shots. I saw a man at the front of the ship waving a gun around, so I immediately hit the floor and covered my head. I looked up moments later and saw a gun lying right in front of me. I picked it up and fired the first shot in the air, and the second at the gunman.
Fearing for my life I ran to the back of the ship. Next thing I knew there was security everywhere and they said I shot the assassin and was the hero of the day."
Shadow doubted anyone could possibly believe that story. Why not?
__________
An experienced sailor would have used the terms "aft", "stern" and "deck".
I know, it was a giveaway. https://forums.windrivers.com/images.../2005/03/1.gifQuote:
Originally Posted by Deity
A person who has been a sailor for twenty years would refer to the front of the boat as the bow or forward, and the back of the boat as stern or aft. Not front and back.Quote:
Originally Posted by a d e p t
He also would have said "I hit the deck" rather than "I hit the floor".
Then you should have given it to me...Quote:
Originally Posted by a d e p t
Unless he's Canadian. All Canadians lie...that would explain it.Quote:
Originally Posted by Deity
You didn't say the magic word. https://forums.windrivers.com/images.../2005/03/1.gifQuote:
Originally Posted by Ya_know
3 points to deity.
Speaking of Canadians...
Alan and Bob each own a bar. Alan's is in very northern New York, and Bob's is just across the border in Canada.
As it turns out, at the beginning of this problem, a Canadian Dollar is worth exactly the same as the U.S. Dollar, and people are quite accustomed to using them interchangeably (including banks).
But, alas, the U.S. Government and the Canadian government get in a spat. So, the U.S. "devalues" the Canadian dollar 10%, so now they will treat it as worth 90 cents (U.S. currency). In retaliation, Canada does the same and "devalues" the U.S. dollar 10%, so they treat it as worth 90 cents (Canadian currency).
Enter Charlie.
Charlie goes to Alan's bar and purchases a 1 dollar drink and pays with a 10 dollar bill (U.S.). He receives, in change, a 10 dollar bill (Canadian). He then walks across the border to Bob's bar and purchases another 1 dollar drink, paying with a 10 dollar bill (Canadian), and he receives, in change, a 10 dollar bill (U.S.).
Charlie proceeds to continue doing this until he finds himself quite intoxicated.
I think it obvious that Charlie is gaining on these transactions. The question is.... WHO (if anyone) is losing out on these transactions?
__________
The respective bar owners are losing money. Just because the government says money is worth something doesn't make it so.
Long answer:
This does provide an arbitrage situation. (And he's correct in that it would not last long in a free floating currency environment, but this problem described an environment where the currency is NOT free floating, so it doesn't apply.)
Alan should give change of 9 American dollars, and Bob should give change of 9 Canadian dollars. (They should do this to avoid losing on the transaction.) And, as several have pointed out, they could keep the foreign currency and trade it (in the foreign country) for their own currency.
If Alan gives change of 10 Canadian dollars (instead of 9 American dollars), he is giving up something that CAN purchase the full equivalent of 10 American dollars.
Similarly, if Bob gives change of 10 American dollars (instead of 9 Canadian dollars), he is giving up something that CAN purchase the full equivalent of 10 Canadian dollars.
*** It is interesting to note, that it is for exactly this reason, among others such as the (in)stability and (high or) low devaluation of the currency, that in countries that don't allow the local currency to freely float, you find the citizens will hoard another country's currency (often U.S. dollars).
In the long run, if a country's banks 'honor' this arbitrage situation, then it is the country (tax payers) which pays for the loss.
Wait a minute!Quote:
Originally Posted by Ya_know
I thought you didn't want to play? https://forums.windrivers.com/images.../2005/03/1.gif
Admit it.
You're hooked bad. https://forums.windrivers.com/images.../2005/03/1.gif
You got that all messed up. If he's in the US, buys a $1 drink with a $10 bill, he isn't going to get $10 Canadian back. He is going to get $9 US, which is the equivlant to $8.10 Canadian, with the 10% devalue. If anything, both bartenders are F'n themselves...Quote:
Originally Posted by a d e p t
That should get me back into the game!
Actually, it does! https://forums.windrivers.com/images.../2005/03/1.gifQuote:
Originally Posted by Ya_know
Both bartenders are losing out.
Here's 3 points in celebration of you coming back to the game. https://forums.windrivers.com/images.../2005/03/1.gif
What 5 letter word does every Oxford graduate pronounce wrong?
__________
The word "wrong".