Question

Which accurately explains what an exchange rate of 1 to 6 between U.S. dollars and Egyptian pounds means?

A) One U.S. dollar will buy six Egyptian pounds.
B) For every one U.S. dollar in circulation there are six Egyptian pounds.
C) It takes six U.S. dollars to buy one Egyptian pound.
D) The GDP of the United States is six times larger than the GDP of Egypt.

Answer 1

(A) One U.S. dollar will buy six Egyptian pounds.

Step-by-step explanation:

It is not unexpected to utilize GDP as a proportion of financial welfare or way of life in a country. When looking at the GDP of various countries, for this reason, two issues quickly emerge.

The GDP of a nation is estimated in its very own cash—the United States utilizes the US dollar; most countries of Western Europe use the euro; Egypt uses the pound, and Mexico employs the peso. Along these lines, contrasting GDP between two nations requires changing over to typical money.