Asked by Kassidy Trovato on Jul 02, 2024
Verified
If the exchange rate for Canadian and U.S.dollars is 0.82777 to 1,this implies that 3 Canadian dollars will buy ________ worth of U.S.dollars.
A) $0.2759
B) $0.82777
C) $1.82777
D) $2.48
E) $1.00
Exchange Rate
The rate at which one currency can be exchanged for another currency, affecting international trade and investments.
Canadian Dollars
The official currency of Canada, represented by the code CAD in the foreign exchange market.
U.S. Dollars
The official currency of the United States, used as a standard monetary unit.
- Calculate and understand the effects of exchange rates on financial transactions.
Verified Answer
ZK
Zybrea KnightJul 03, 2024
Final Answer :
D
Explanation :
If 1 U.S.dollar is worth 0.82777 Canadian dollars, then 1 Canadian dollar is worth approximately 1.21 U.S.dollars (1/0.82777). Therefore, 3 Canadian dollars would be worth approximately $3.64 (3 x 1.21). However, the question is asking for the value in U.S.dollars, so we need to divide by the exchange rate: $3.64 ÷ 0.82777 ≈ $4.39. So, 3 Canadian dollars will buy approximately $4.39 worth of U.S.dollars, which is closest to answer choice D, $2.48.
Learning Objectives
- Calculate and understand the effects of exchange rates on financial transactions.