When a Tourist Goes to a Bank in a Foreign

question 48

Multiple Choice

When a tourist goes to a bank in a foreign country to convert money into the local currency, the exchange rate used is the

• A) currency swap rate.
• B) forward rate.
• C) carry trade.
• D) spot rate.

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Definitions:

Simplify

To make something easier to understand or to reduce to a simpler form.

Canadian Dollar

The official currency of Canada, represented by the symbol "$" or the code "CAD".

U.S. Dollar

The official currency of the United States, widely used for international transactions and as a reserve currency.

Collect Like Terms

Combining algebraic terms with the same variable factors into a single term by adding or subtracting their coefficients.