All about flooble | fun stuff | Get a free chatterbox | Free JavaScript | Avatars
 perplexus dot info

 On the house? (Posted on 2003-10-31)
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?

 See The Solution Submitted by SilverKnight Rating: 3.7619 (21 votes)

 Subject Author Date No Subject kuja 2007-08-08 04:57:48 hummmm Sarah 2006-04-06 03:26:29 money jamie 2005-10-18 23:47:20 re: senseless yapping Easy_to_find_out 2004-10-20 22:20:03 senseless yapping Kevin 2004-09-27 00:31:40 Intoxicated Gustavo 2004-06-15 11:37:39 re: unsatisfied ThoughtProvoker 2004-04-19 17:54:50 unsatisfied dy 2004-04-19 17:38:27 it is possible Rohan Shah 2004-03-29 14:39:48 re(3): W00t John 2003-11-07 09:21:59 re(2): W00t Charlie 2003-11-06 19:41:35 re: W00t John 2003-11-06 17:59:32 W00t Joe C 2003-11-06 07:59:54 The governments/banks lose. John 2003-11-05 16:48:49 re: Loser Chaz 2003-11-04 19:05:59 re: 4 losers, 2 winners, bar none. Bruno 2003-11-02 21:37:13 Loser Tristan 2003-11-02 16:11:16 4 losers, 2 winners, bar none. Dan 2003-11-02 04:06:41 Arbitrage Popstar Dave 2003-11-01 11:25:47 Loser. DJ 2003-10-31 12:03:07 Who loses. Marc Meyer 2003-10-31 11:35:25 solution rerun141 2003-10-31 10:42:24 bars lose nothing rerun141 2003-10-31 10:07:29 solution Charlie 2003-10-31 09:50:53 Charlie loses retiarius 2003-10-31 09:35:52

 Search: Search body:
Forums (0)