Consider the following table, which shows the prices of cappuccinos in cafes in various cities.
$$\begin{array} { | l | l | l | }
\hline \text { CITY } & \text { PRICE OF A CUP OF CAPPUCCINO } & \text { NOMINAL EXCHANGE RATE } \
\hline \text { London } & 3.15 \text { British pounds } & 1.28 \text { U.S. dollars per British pound } \
\hline \text { Paris } & \text { 5.1 European euros } & 1.11 \text { U.S. dollars per European Euro } \
\hline \text { Melbourne } & \text { 4.6 Australian dollars } & 0.68 \text { U.S. dollar per Australian dollar } \
\hline \text { Stockholm } & \text { 40 Swedish kronas } & 0.1 \text { U.S. dollar per Swedish krona } \
\hline \text { Moscow } & \text { 220 Russian rubles } & 0.02 \text { U.S. dollar per Russian ruble } \
\hline
\end{array}$$ ?
Where does the cappuccino cost the LEAST in terms of nominal U.S. dollars?

Question

Consider the following table, which shows the prices of cappuccinos in cafes in various cities.
$$\begin{array} { | l | l | l | } 
\hline \text { CITY } & \text { PRICE OF A CUP OF CAPPUCCINO } & \text { NOMINAL EXCHANGE RATE } \
\hline \text { London } & 3.15 \text { British pounds } & 1.28 \text { U.S. dollars per British pound } \
\hline \text { Paris } & \text { 5.1 European euros } & 1.11 \text { U.S. dollars per European Euro } \
\hline \text { Melbourne } & \text { 4.6 Australian dollars } & 0.68 \text { U.S. dollar per Australian dollar } \
\hline \text { Stockholm } & \text { 40 Swedish kronas } & 0.1 \text { U.S. dollar per Swedish krona } \
\hline \text { Moscow } & \text { 220 Russian rubles } & 0.02 \text { U.S. dollar per Russian ruble } \
\hline
\end{array}$$ ?
Where does the cappuccino cost the LEAST in terms of nominal U.S. dollars?

Quizplus · Accepted Answer

To find the cost in U.S. dollars, multiply the price of a cup of cappuccino by the nominal exchange rate for each city. For Melbourne, it's $4.6 \times 0.68 = 3.128$ U.S. dollars, which is the lowest among the options provided.

Consider the Following Table, Which Shows the Prices of Cappuccinos