Suppose a Tata Nano car is priced at Rs.100,000 in New Delhi and $3,129 in New York. In which place is the car more expensive if the spot rate is $0.0242/Rs.?

Question

Quizplus · Accepted Answer

To compare the prices in both places, we need to convert the prices to a common currency. 
100,000 Rs. in New Delhi is equivalent to $2,420 ($100,000 x $0.0242/Rs.)
$3,129 in New York is the same in US dollars. 
Therefore, the car is more expensive in New York.

Suppose a Tata Nano Car Is Priced at Rs