If the Exchange Rate Is 5 Units of Peruvian Currency

question 94

Multiple Choice

If the exchange rate is 5 units of Peruvian currency per dollar and a hotel room in Lima costs 300 units of Peruvian currency,how many dollars do you need to get a room?

• A)1,500, and your purchase will increase Peru's net exports.
• B)60 and your purchase will increase Peru's net exports.
• C)1,500 and your purchase will have no effect on Peru's net exports.
• D)60 and your purchase will have no effect on Peru's net exports.

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Definitions:

Stamp Act

A British law enacted in 1765 requiring a tax in the form of a stamp to be paid on a wide array of documents and printed items in the American colonies.

Prime Minister

Refers to the head of government in many countries, typically the leader of the majority party in the legislature, who oversees the administration of government policies.

George Grenville

A British Whig statesman who served as Prime Minister of Great Britain from 1763 to 1765, known for his role in passing the Stamp Act, which contributed to the American Revolution.

North American Colonies

The North American Colonies refer to the territories in North America that were colonized by European powers from the 16th century, leading to the formation of countries like the United States and Canada.