When the people involved in an exchange are from countries that use different currencies, an intermediate asset transaction has to take place:
A)the seller must convert her currency into the currency that the buyer uses and accepts.
B)the buyer must convert her currency into the currency that the seller uses and accepts.
C)the buyer and seller should engage in barter trade.
D)both buyer and seller should exchange their currencies to gold.

Question

Quizplus · Accepted Answer

The buyer must convert her currency into the currency that the seller uses and accepts to facilitate the transaction, as the seller typically requires payment in their own currency.

When the People Involved in an Exchange Are from Countries