If the Spot Exchange Rate Between Euros and Dollars Is

question 50

Multiple Choice

If the spot exchange rate between euros and dollars is €1.5/$ before the dollar depreciates by 10%,how many dollars will it now (after the depreciation has occurred) take to pay an invoice of €500?

• A) $366.67
• B) $370.37
• C) $750.00
• D) $825.00

---

Definitions:

Marketability

The ease with which a product or service can be sold or marketed in a particular market.

Profitability

The ability of a company to generate earnings relative to its revenue, assets, or equity over a specific period, indicating its financial health.

Vertical Analysis

A financial method that expresses each item within a financial statement in percentage terms of a base figure for the same time period, facilitating comparison.

Base Amount

A reference value or starting point used in financial calculations or comparisons.