Question

The best time for Americans to import French cheese is when they can

A. exchange a combination of goods and US dollars for euros.
B. buy the most euros for US dollars.
C. buy the most US dollars for euros.
D. exchange US dollars for pesos and then for euros.

Answer 1

Correct answer choice is

B. Buy the most euros for US dollars.

Step-by-step explanation:

It is popularly known that the American dollar is one of the strongest currencies around the world, wold wide trade is done on the American dollar nevertheless, the euro is stronger than the United States dollar.

But if making a comparison between both currencies you will found out the Euro currency is more fluctuated currency than American Dollar.

This is the reason if wanting to import french cheese, the Americans should hold up for a day in which the euro is not strong so that they will be able to buy the most euros for US dollars, and make a better deal.

Answer 2

Correct answer choice is:

B. Buy the most euros for US dollars.

Step-by-step explanation:

While the euro is presently powerful than the dollar, high variations in the euro's rate imply that the currency is uncertain. Only 6 of 55 foreign currencies are powerful than the dollar. This may place the dollar for further expected earnings upon these currencies.

Hence, more the number of euros will be bought, the more will be the profit.