In the market for Canadian dollars measured in US dollars,if the price of a US dollar is 1.10 Canadian dollars,a Canadian dollar is

Question

​In the market for Canadian dollars measured in US dollars,if the price of a US dollar is 1.10 Canadian dollars,a Canadian dollar is

Quizplus · Accepted Answer

If the price of a US dollar is 1.10 Canadian dollars, then it means that one Canadian dollar is worth 0.91 US dollars (1/1.10). Therefore, the best choice is C, which states that a Canadian dollar is worth 0.91 cents in US dollars. Option A is incorrect because it implies that a Canadian dollar is worth more than a US dollar. Option B is incorrect because it assumes a 1:1 exchange rate, which is not the case. Option D is also incorrect because it implies that a Canadian dollar is worth less than one US cent, which is not the case.

​In the Market for Canadian Dollars Measured in US Dollars,if

In the Market for Canadian Dollars Measured in US Dollars,if