Final answer:
In noncash/exchange transactions, the cost depends on the difference between the buying and selling rates of the currencies being exchanged. This cost is incurred due to the exchange rate difference and the profit margin applied by the currency exchange office.
Step-by-step explanation:
When it comes to noncash/exchange transactions, the cost can vary depending on the exchange rate. In a noncash/exchange transaction, the cost is the difference between the buying and selling rates of the currencies being exchanged.
For example, if you have $100 and want to exchange it for Turkish Lira, and the exchange rate is 5.50, you will get 550 Turkish Lira. However, if you want to convert back the 550 Turkish Lira into U.S. dollars and the exchange rate is 5.80, you will get around $94.83.
This cost is incurred due to the difference in exchange rates and the profit margin applied by the currency exchange office.