Exxon Mobil wants to pay
160,000 to a German supplier. They get an exchange rate quotation from its own commercial bank and instructs it to debit their dollar account and pay
160,000 to the supplier's German account. If the exchange rate quoted is $1.2 per euro, how much is debited to Exxon Mobil's account?
A) $160,000
B) $172,000
C) $180,000
D) $192,000
E) $150,000
Correct Answer:
Verified
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A) 20 percent of foreign
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A) is a spot
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A) only about 10 percent
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