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In the United States,a Cup of Hot Chocolate Costs $5

Question 54

Multiple Choice

In the United States,a cup of hot chocolate costs $5.In a foreign country,the same hot chocolate costs 6.5 units of that country's currency.If the exchange rate were 1.3 units of foreign currency per U.S.dollar,what is the real exchange rate?


A) 1/2 cup of that country's hot chocolate per cup of U.S.hot chocolate
B) 1 cup of that country's hot chocolate per cup of U.S.hot chocolate
C) 2 cups of that country's hot chocolate per cup of U.S.hot chocolate
D) None of the above is correct.

Correct Answer:

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