Asked by Esther Sagoe on Jul 29, 2024
Verified
If a European importer can buy $10,000 for 11,100 euros, the exchange rate for the euro is
A) 1 euro = $0.80.
B) 1 euro = $0.90.
C) 1 euro = $0.95.
D) 1 euro = $1.11.
Exchange Rate
The value at which the currency of one nation can be converted into the currency of another nation.
Euros
The official currency used by 19 of the 27 European Union countries, known collectively as the Eurozone.
Importer
An individual, company, or entity that buys goods or services from a foreign country for sale within their own country.
- Calculate exchange rates and understand their impact on international financial transactions.
Verified Answer
DS
Didar SahinJul 29, 2024
Final Answer :
B
Explanation :
To find the exchange rate, divide the dollar amount by the euro amount: $10,000 ÷ 11,100 euros = $0.90 per euro. Therefore, the exchange rate for the euro is 1 euro = $0.90.
Learning Objectives
- Calculate exchange rates and understand their impact on international financial transactions.