If the exchange rate is 5 units of Peruvian currency per dollar and a hotel room in Lima costs 300 units of Peruvian currency,how many dollars do you need to get a room?
A)1,500, and your purchase will increase Peru's net exports.
B)60 and your purchase will increase Peru's net exports.
C)1,500 and your purchase will have no effect on Peru's net exports.
D)60 and your purchase will have no effect on Peru's net exports.

Question

Quizplus · Accepted Answer

If one unit of Peruvian currency is equal to 1/5 of a dollar, then 300 units of Peruvian currency are equal to 300/5 = 60 dollars. Therefore, to get a room, you would need 60 dollars. Additionally, the question does not provide enough information to determine the effect of the purchase on Peru's net exports, so it is not relevant to the answer.

If the Exchange Rate Is 5 Units of Peruvian Currency