Multiple Choice
In the U.S.a digital camera costs $150.The same camera in London sells for 60 pounds.If the exchange rate is .50 pounds per dollar,then which of the following is correct?
A) The real exchange rate is greater than 1.A person in London with $150 could exchange them for pounds and have more than enough to buy the camera there.
B) The real exchange rate is greater than 1.A person in London with $150 could exchange them for pounds but then wouldn't have enough to buy the camera there.
C) The real exchange rate is less than 1.A person in London with $150 could exchange them for pounds and have more than enough to buy the camera there.
D) The real exchange rate is less than 1.A person in London with $150 could exchange them for pounds but then wouldn't have enough to buy the camera.
Correct Answer:
Verified
Correct Answer:
Verified
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