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Will using the conversion ratio of one euro equals 1.35261 US dollars give the Rush family the correct exchange?

A) Yes, because the conversion ratio is precise and accurate.
B) No, because the conversion ratio is stated to the nearest hundredths of a dollar.
C) Yes, because rounding is not significant in currency exchange.
D) No, because the conversion ratio is stated to the nearest thousandths of a dollar.

1 Answer

4 votes

Final answer:

No, using the conversion ratio of one euro equals 1.35261 US dollars will not provide the correct exchange for the Rush family as currency transactions are typically carried out to the nearest hundredths of a dollar, and this value is to the thousandths.

Step-by-step explanation:

Will using the conversion ratio of one euro equals 1.35261 US dollars give the Rush family the correct exchange? The answer is B) No, because the conversion ratio is stated to the nearest thousandths of a dollar. While the stated conversion ratio is precise, it's important to have the most accurate exchange rate possible for financial transactions to avoid any potential loss due to rounding effects.

Currency exchanges usually require precision up to the nearest hundredths of a dollar, also known as the 'cent.' Precision to the nearest thousandths might not be readily accepted by financial institutions or may not reflect the actual market rate which could lead to discrepancies in the amount exchanged.

User Siutsin
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