The Current Exchange Rates Show That C$1

question 48

Multiple Choice

The current exchange rates show that C$1.00 = €0.7448. If you have $1,000 Canadian dollars to exchange and the currency exchange charges 4% on all transactions, how many euros will you be able to buy?

• A) €1,342.64
• B) €1063.59
• C) €1,288.94
• D) €715.008
• E) €960

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Definitions:

Downward Sloping

A term often used to describe a graph line indicating a decrease in one variable as another variable increases, such as price and demand.

Indifference Curves

Graphical representations that show combinations of two goods between which a consumer is indifferent.

Perfect Substitutes

Goods or services that can be used in exactly the same way and are interchangeable in consumption without affecting consumer satisfaction.

Straight Lines

Typically refers to the simplest form used in geometry and graphical analysis, representing a direct and continuous path between two points without any curves.