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Suppose a European Tourist in the United States Uses 1

Question 34

Multiple Choice

Suppose a European tourist in the United States uses 1 euro to buy 1.27 U.S.dollars.However, when she leaves the United States, she pays 1.50 U.S.dollars to buy 1 euro.The difference of 0.23 U.S.dollars is the:


A) amount refunded to the tourist once she reaches her home country.
B) profit that the bank makes for each U.S.dollar bought and sold.
C) fee paid to the U.S.government for the stay in the country.
D) profit that the U.S.treasury department makes on each U.S.dollar bought and sold.
E) profit that the U.S.Home department makes on each U.S.dollar bought and sold.

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