Consider a U.S.importer desiring to purchase merchandise from a Dutch exporter invoiced in euros,at a cost of €512,100.The U.S.importer will contact his U.S.bank (where of course he has an account denominated in U.S.dollars) and inquire about the exchange rate,which the bank quotes as €1.0242/$1.00.The importer accepts this price,so his bank will ____________the importer's account in the amount of ____________.
A) debit, $500,000
B) credit, €512,100
C) credit, $500,000
D) debit, €512,100
Correct Answer:
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