Asked by Kaylee Dalena on Jul 09, 2024
Verified
If an American can purchase 30,000 British pounds for $105,000, the dollar rate of exchange for the pound is
A) $3.50.
B) $3.00.
C) $0.29.
D) $0.13.
Rate of Exchange
The value of one currency for the purpose of conversion to another, indicating how much foreign currency can be exchanged for a unit of domestic currency.
- Assess and interpret the implications of exchange rates for international commerce and transactions.
Verified Answer
EN
Edgar N. BarrozoJul 10, 2024
Final Answer :
A
Explanation :
The dollar rate of exchange for the pound is calculated by dividing the amount in dollars by the amount in pounds. So, $105,000 / 30,000 pounds = $3.50 per pound.
Learning Objectives
- Assess and interpret the implications of exchange rates for international commerce and transactions.