The Figure Given Below Depicts the Foreign Exchange Market for British

question 74

Multiple Choice

The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2

-How many U.S. dollars does a U.S. importer need to pay for 100,000 yen worth of stereo equipment when the price of 1 yen is $0.008?

• A)$125 million
• B)$1.25 million
• C)$80,000
• D)$1,250
• E)$800

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