If the euro/dollar exchange rate is 1.20 euro/dollar, and an American washing machine costs $250, assuming no trade barriers or transportation costs, what is the euro price of the washing machine?

Question

Quizplus · Accepted Answer

To find the euro price of the washing machine, divide the dollar price by the exchange rate: $250 / 1.20 euro/dollar = 208.33 euros. Since none of the provided options exactly matches this result, the closest option, 200 euros, is considered correct.

If the Euro/dollar Exchange Rate Is 1