Suppose you are a U.S.importer purchasing coffee from Guatemala at a dollar price of $10, 000.If the bank charges $0.12 per quetzal, you would have to buy 120, 000 quetzals to settle the account with the Guatemalan exporter.

Question

Quizplus · Accepted Answer

The statement is incorrect because if the bank charges $0.12 per quetzal, you would need to calculate the amount of quetzals required by dividing the dollar amount by the price per quetzal. $10,000 divided by $0.12 equals approximately 83,333.33 quetzals, not 120,000.

Suppose You Are a U