Consider a U

Multiple Choice

Consider a U.S.importer desiring to purchase merchandise from a Dutch exporter invoiced in euros,at a cost of €512,100.The U.S.importer will contact his U.S.bank (where of course he has an account denominated in U.S.dollars) and inquire about the exchange rate,which the bank quotes as €1.0242/$1.00.The importer accepts this price,so his bank will ________ the importer's account in the amount of ________.

A) debit; $500,000
B) debit; $524,492
C) credit; $500,000
D) debit; €512,100