If the Price of a Digital SLR Camera in Japan

question 31

Multiple Choice

If the price of a digital SLR camera in Japan is ¥55, 000, and the exchange rate is 93¥/$, calculate the dollar price of the digital SLR camera in Japan.

• A)$603.29
• B)$397.48
• C)$886.82
• D)$591.40
• E)$101

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Definitions:

Coffee Shop

A retail establishment that sells coffee, tea, and sometimes light meals or snacks.

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting liquidity.

Transaction Exposure

The risk of adverse changes in exchange rates affecting the value of a company's transactions in foreign currencies.

Financial Risk

Refers to the possibility of losing money on an investment or business venture.