Let the nominal exchange rate between the United States and Canada be CAN$0.88 for US$1.You will then be able to buy a souvenir on the Canadian side of Niagara Falls that costs CAN$10 when you have US$13 in your wallet.

Question

Quizplus · Accepted Answer

At the current exchange rate of CAN$0.88 for US$1, US$13 would be equivalent to CAN$11.44. As the cost of the souvenir is only CAN$10, you would be able to purchase it with the amount of money you have in your wallet.

Let the Nominal Exchange Rate Between the United States and Canada