Economics 0455 · IGCSE · Foreign exchange rates

Foreign exchange rates — practice question

A car dealer in the US agrees to pay an import price of US$25000 for a Japanese car at the prevailing exchange rate. The US dollar then rises by 10% against the Japanese yen. What is the revised import price that will be paid for the Japanese car?

  • AUS$20000
  • BUS$22500
  • CUS$25000
  • DUS$27500

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