The domestic currency value of the foreign currency price of a product is equal to:
A) the reciprocal exchange rate between the domestic and foreign currency.
B) the reciprocal of the foreign currency price of the product.
C) the difference between the foreign currency price of the product and the exchange rate between the domestic and foreign currency.
D) the foreign currency price of the product multiplied by the exchange rate between the domestic and foreign currency.
E) the reciprocal exchange rate between the domestic and foreign currency divided by the foreign currency price of the product.

Question

Quizplus · Accepted Answer

The domestic currency value of the foreign currency price of a product is found by multiplying the foreign currency price by the exchange rate between the domestic and foreign currency. This converts the price from the foreign currency into the domestic currency.

The Domestic Currency Value of the Foreign Currency Price of a Product