Suppose that the exchange rate between the dollar and peso is that $1 equals 10 pesos. If a firm in Mexico purchases $10,000 worth of U.S. cellphones, how many pesos must the firm exchange for?
A) 100 pesos.
B) 1,000 pesos.
C) 10,000 pesos.
D) 100,000 pesos.
E) 1,000,000 pesos.
Correct Answer:
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