Suppose that the Canadian dollar exchanges for 0.80 U.S.dollars and also for 0.60 euros.A U.S.dollar exchanges for

Question

Quizplus · Accepted Answer

To find the exchange rate between U.S. dollars and euros, we can use the exchange rates given for Canadian dollars. We know that 1 Canadian dollar = 0.80 U.S. dollars and 1 Canadian dollar = 0.60 euros. Therefore, 1 U.S. dollar = (1/0.80) Canadian dollars = 1.25 Canadian dollars and 1 euro = (1/0.60) Canadian dollars = 1.67 Canadian dollars. To find the exchange rate between U.S. dollars and euros, we divide the exchange rate of euros by the exchange rate of U.S. dollars: 1.67 euros / 1.25 U.S. dollars = 1.336 euro/U.S. dollar or approximately 0.75 euros/U.S. dollar. Therefore, the best choice is B.

Suppose That the Canadian Dollar Exchanges for 0