Maria's aunt, Juanita, is cruising in South America. Juanita told Maria she would be glad to buy her some jewelry while in one of the ports. She said she will shop in Santiago, Chile, because the exchange rate would be to her benefit. This means:A. the currency in the U. S. will be almost equal to the Chilean currency; otherwise it would not be a good exchange.

B. the currency in the U. S. is devalued.

C. the currency in the U. S. has strength against the Chilean currency.

D. the currency in the U. S. is weak against the Chilean currency.

Question

Business

Asher Duke

5 August, 23:41

Maria's aunt, Juanita, is cruising in South America. Juanita told Maria she would be glad to buy her some jewelry while in one of the ports. She said she will shop in Santiago, Chile, because the exchange rate would be to her benefit. This means:A. the currency in the U. S. will be almost equal to the Chilean currency; otherwise it would not be a good exchange.

B. the currency in the U. S. is devalued.

C. the currency in the U. S. has strength against the Chilean currency.

D. the currency in the U. S. is weak against the Chilean currency.

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Answers (1)

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Tanner · Answer 1

This means: the currency in the U. S. has strength against the Chilean currency. Thus, the correct option is C

Explanantion:

The benefit will be arisen because of the exchange rate benefit. Maria will get the jewellery at cheaper rate in Chile as compare to the jewellery purchased in South America. Thus, Juanita (her aunt) should not buy or shop for her in America as it will cost bit more to her. Exchnage rate should be taken care of while purchasing overseas.

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Choose the option C as the correct answer.