Question

If the nominal exchange rate between the American dollar and the Canadian dollar is 0.89 Canadian dollars per American​ dollar, how many American dollars are required to buy a product that costs 2.5 Canadian​ dollars? A. ​$2.75 B. ​$2.23 C. ​$1.32 D. ​$2.81

Answer 1

Answer:C

Explanation: Since you need 2.5 Canadian Dollars, .89 = to 1. Therefore 2.5 times the .89 equals to 2.225, or rounding up to 2.23