Suppose That the Dollar Buys More Bananas in Honduras Than

Multiple Choice

Suppose that the dollar buys more bananas in Honduras than in Guatemala. How could traders make a profit?

A) by buying bananas in Honduras and selling them in Guatemala, which would tend to raise the price of bananas in Honduras
B) by buying bananas in Honduras and selling them in Guatemala, which would tend to raise the price of bananas in Guatemala
C) by buying bananas in Guatemala and selling them in Honduras, which would tend to raise the price of bananas in Guatemala
D) by buying bananas in Guatemala and selling them in Honduras, which would tend to raise the price of bananas in Honduras