If the Nominal Exchange Rate Between the Canadian Dollar and the American

question 18

Multiple Choice

If the nominal exchange rate between the Canadian dollar and the American dollar is 0.89 Canadian dollars per American dollar, how many American dollars are required to buy a product that costs 2.5 Canadian dollars?

• A)$1.32
• B)$2.23
• C)2.5
• D)$2.75
• E)$2.81

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Definitions:

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A form of electromagnetic radiation used in imaging and diagnostics to view inside the body.

Ionization

The process by which an atom or a molecule acquires a negative or positive charge by gaining or losing electrons.

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The smallest units of a chemical substance that can exist independently while retaining the substance's chemical properties.

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