Suppose a UK firm that imports German wines writes a cheque for £10 000 to cover a bill of €27 500 for the latest shipment, the exchange rate between pounds and euros is _____.
A) £1.00 equals €1.00
B) £1.00 equals €2.75
C) €1.00 equals £2.00
D) €1.00 equals £4.50
Correct Answer:
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A)
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