If the Unit of Foreign Currency Is the Peso,in Which

question 75

Multiple Choice

If the unit of foreign currency is the peso,in which case is the real exchange rate 1.2?

• A)the U.S.price is $2,the foreign price is 5 pesos,and the exchange rate is 3 pesos per dollar.
• B)the U.S.price is $3,the foreign price is 18 pesos,and the exchange rate is 5 pesos per dollar.
• C)the U.S.price is $5,the foreign price 12 pesos,and the exchange rate is 2 pesos per dollar.
• D)the U.S.price is $10,the foreign price is 3 pesos,and the exchange rate is 4 pesos per dollar.

---

Definitions:

Start-up Businesses

Companies in their early stages of operation, focusing on a unique product or service aiming to meet a market need or solve a problem.

Top Executive

A high-level position in a company responsible for making major corporate decisions, overseeing the overall operations, and managing organizational resources.

Technological Breakthroughs

Major advances in technology that can dramatically change an industry or economy.

Internet

The Internet is a global network of computers that allows for the exchange of data, communication, and access to information across the world.