Ask Question
2 September, 23:39

A pair of running shoes costs $70 in the U. S. If the price of the same shoes is 4500 rupees in India and the exchange rate is 60 rupees per dollar, than the real exchange rate is:A. more than 1, so a profit could be made by buying these shoes in the U. S. and selling them in India. B. more than 1, so a profit could be made by buying these shoes in India and selling them in the U. S. C. less than 1, so a profit could be made by buying these shoes in the U. S. and selling them in India. D. less than 1, so a profit could be made by buying these shoes in India and selling them in the U. S.

+3
Answers (1)
  1. 3 September, 01:24
    0
    less than 1, so a profit could be made by buying these shoes in the U. S. and selling them in India.

    Answer: Option D.

    Explanation:

    In finance, an exchange rate is the rate at which one currency will be traded for another. It is additionally viewed as the estimation of one nation's money comparable to another cash.

    Exchange rate is the cost of one cash regarding another money. Exchange rates can be either fixed or floating. It is the floor value that must be addressed independent of the market cost.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A pair of running shoes costs $70 in the U. S. If the price of the same shoes is 4500 rupees in India and the exchange rate is 60 rupees ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers