Using exchange rates, it is possible to price-compare in different nations. If an iPod costs $90 in the United States and €45 in France, in which nation would you get the better deal when the dollar-euro exchange rate is $2.50/€?
A) The iPod would be cheaper in France.
B) The iPod would be cheaper in the United States.
C) The iPod would cost the same in both countries.
D) From the information provided, it is impossible to answer this question.

Question

Quizplus · Accepted Answer

We need to convert the price of the iPod in France to dollars by multiplying it by the exchange rate: €45 x $2.50/€ = $112.50. Therefore, the iPod is cheaper in the United States at $90 compared to France at $112.50.

Using Exchange Rates, It Is Possible to Price-Compare in Different