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?

Question

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?

Quizplus · Accepted Answer

To calculate the amount debited to Exxon Mobil's account, we need to convert euros to dollars using the exchange rate of $1.2 per euro.

Amount in dollars = Amount in euros x Exchange rate
Amount in dollars = 160,000 x 1.2
Amount in dollars = $192,000

Therefore, the amount debited to Exxon Mobil's account is $192,000. The correct answer is option D.

Exxon Mobil Wants to Pay 160,000 to a German