Question

Sarah is vacationing in Canada from the United Kingdom. She would like to purchase a souvenir t-shirt to take back to her sister as a gift.

What must Sarah do in order to purchase the souvenir?

A

buy the souvenir with her British currency

B.

exchange her British currency for Canadian currency

C

exchange her Canadian currency for British currency

D

buy the souvenir with both British and Canadian currency

Answer 1

exchange her British currency for Canadian currency

Step-by-step explanation:

When in a foreign country, the legal tender, that is the means of exchange is with the currency of the country where you are.

So Sarah cannot use her british pounds in canada to make payments for goods and services. Given that the pounds is not the recognized currency of transactions in Canada. She has to exchange her pounds for Canadian currency first, before she can buy this item for her sister.