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question 15

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Consider a U.S.importer desiring to purchase merchandise from a Dutch exporter invoiced in euros,at a cost of €160,000.The U.S.importer will contact his U.S.bank (where,of course,he has an account denominated in U.S.dollars) and inquire about the exchange rate,which the bank quotes as €0.6250/$1.00.The importer accepts this price,so his bank will proceed to ________ the importer's account in the amount of ________.


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