Suppose the Nominal Exchange Rate Between the Yen and the U.S

question 62

Multiple Choice

Suppose the nominal exchange rate between the yen and the U.S. dollar is 195 yen per U.S. dollar, and that the nominal exchange rate between the Canadian dollar and the U.S. dollar is 1.30 Canadian dollars per U.S. dollar. How many yen would it take to buy a Canadian dollar?

• A) 0.0067
• B) 2.54
• C) 150
• D) 253.5

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