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:
Verified
Q2: The current exchange rate is €1.00 =
Q3: The current exchange rate is £1.00 =
Q3: The world's largest foreign exchange trading center
Q4: It is common practice among currency traders
Q5: Suppose that the current exchange rate is
Q6: The standard size foreign exchange transactions are
Q7: The foreign exchange market closes
A)Never.
B)4:00 p.m. EST
Q9: Spot foreign exchange trading
A)accounts for about 5
Q11: At the wholesale level,
A)most trading takes place
Q15: Most interbank trades are
A)speculative or arbitrage transactions.
B)simple
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