If the exchange rate is 5 units of Peruvian currency per dollar and a hotel room in Lima costs 300 units of Peruvian currency,then how many dollars do you need to get a room?
A) 1,500,and your purchase will increase Peru's net exports.
B) 60 and your purchase will increase Peru's net exports.
C) 1,500 and your purchase will have no effect on Peru's net exports.
D) 60 and your purchase will have no effect on Peru's net exports.

Question

Quizplus · Accepted Answer

To find out how many dollars are needed to purchase a hotel room for 300 units of Peruvian currency, we need to divide 300 by 5 (the exchange rate). 300/5 = 60. Therefore, you would need 60 dollars to get a room. The fact that the purchase will increase or have no effect on Peru's net exports is not relevant to the answer.

If the Exchange Rate Is 5 Units of Peruvian Currency