Economics 2281 · O Level · Foreign exchange rates

Foreign exchange rates — practice question

A US car dealer agrees to an import price of US$25 000 for a Japanese car at the prevailing exchange rate. The US dollar then rises by 10% against the Japanese yen. What is the new import price that will be paid for the Japanese car?

  • AUS$20 000
  • BUS$22 500
  • CUS$25 000
  • DUS$27 500

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