Question

Which of the following transactions requires no exchange of currency? (1 point)

An importer in Virginia buys a shipment of cotton textiles from Ghana.
A German bank transfers money between accounts in France and Algeria.
A Vietnamese restaurant in Australia always pays its employees in cash.
A South African mining company sells rare minerals to a Chinese manufacturer.

Answer 1

A Vietnamese restaurant in Australia always pays its employees in cash.

Step-by-step explanation:

This transaction would not require the exchange of currency, because even if the Vietnamese restaurant serves Vietnamese food, and is likely to be owned by Vietnamese nationals, the restaurant itself is located on Australian territory, and its employees, whether australian citizens or not, have to be paid in Australian currency.

Besides, the whole operation of the Vietnamese restaurant is in Australia, so its financing, product procurement, and operation in general, is also carried out in Australian currency.