Economics 0455 · IGCSE · Foreign exchange rates

Foreign exchange rates — practice question

At first, an Argentine product is sold in the US for $\$50$ when the exchange rate between the two countries is $5$ pesos to $1$ dollar. The exchange rate then changes to $10$ pesos to $1$ dollar, while the product’s price in Argentina stays the same. What is the product’s new price in the US?

  • A$\$5$
  • B$\$25$
  • C$\$100$
  • D$\$500$

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI