Asked by Emily Jackson on Jul 16, 2024
Verified
If a U.S. importer can purchase 10,000 British pounds for $30,000, the rate of exchange is
A) $3 = 1 British pound in the United States.
B) $1 = 3 British pounds in the United States.
C) $0.33 = 1 British pound in Great Britain.
D) $1 = 0.33 British pound in Great Britain.
Exchange Rate
The value of one currency for the purpose of conversion to another, affecting international trade, investments, and economic relations between countries.
British Pounds
The currency of the United Kingdom, symbolized by £, and one of the major currencies traded worldwide.
- Acquire knowledge about the core aspects of exchange rates and their determination in international marketplaces.
- Recognize the effects of currency fluctuations on international trade and financial transactions.
Verified Answer
ZK
Zybrea KnightJul 21, 2024
Final Answer :
A
Explanation :
The exchange rate is calculated by dividing the amount of dollars by the amount of British pounds. $30,000 / 10,000 pounds = $3 per pound.
Learning Objectives
- Acquire knowledge about the core aspects of exchange rates and their determination in international marketplaces.
- Recognize the effects of currency fluctuations on international trade and financial transactions.