Sarah tells Rolph that he will receive 0.85 euro for every U.S. dollar he wants to convert for his trip to Italy. Sarah is referring to

Question

BlackTom AI · Accepted Answer

The quote "0.85 euro for every U.S. dollar" is a direct statement of the currency price, i.e., the exchange rate.

1. Relevant knowledge points and concepts
- Exchange rate: the price of one currency expressed in units of another (for example, euros per U.S. dollar).
- Spot vs. forward exchange: a spot rate applies to immediate conversion; a forward rate is a contracted future rate.
- Arbitrage (not arbitration): exploiting price differences across markets for profit.
- Balance-of-trade equilibrium: macroeconomic condition where exports equal imports.
- Countertrade: barter-like trade where goods/services are exchanged rather than using convertible currency.

2. Step-by-step reasoning
- The phrase gives a direct conversion factor: 0.85 euro per 1 U.S. dollar.
- That is precisely the definition of an exchange rate: a quoted amount of one currency per unit of another.
- No time element or contract is mentioned, so this is a spot exchange quote rather than a forward contract.

3. Calculations / intermediate steps (simple numeric illustration)
- Given rate: 1 USD = 0.85 EUR.
- Example conversion: If Rolph converts $100, the euros received = 100 × 0.85 = 85 euros.
- The rate can be inverted if needed: 1 EUR = 1 / 0.85 ≈ 1.1765 USD.

4. Why the correct answer is correct
- The statement directly specifies how many euros one gets for each U.S. dollar; this is the textbook meaning of an exchange rate. It allows immediate currency conversion at that quoted price.

5. Why the other options are incorrect
- Arbitration: a legal dispute resolution process, not a currency quote (and the option likely confuses arbitration with arbitrage).
- A balance-of-trade equilibrium: a macroeconomic condition about exports and imports, not a unit price of currency.
- A forward exchange: a forward contract sets a future exchange rate; the quote gives no future-contract context.
- Countertrade: involves exchanging goods/services instead of currency, not quoting currency units.

6. Conclusion
The correct choice is "the exchange rate." This matches the provided answer.

Sarah tells Rolph that he will receive 0.85 euro for every U.S. dollar he wants to convert for his trip to Italy. Sarah is referring to单项选择题

类似问题

A floating exchange rate is

An increase in demand for a currency, would, ceteris paribus, cause the currency to

A floating exchange rate is

If a person has Australian dollars and wishes to exchange them for Thai baht, which exchange rate would the person prefer? $1 = 24.13 baht or $1 = 26.13 baht

Which of the following factors is most likely to have caused the change shown in the diagram below? The Market for Malaysian Ringgit

Choose the combination of two words that best fill the gaps in the following sentence: If the Australian exchange rate falls (Australian dollar depreciates), the price to foreigners of Australian produced goods and services and so the quantity of Australian dollars demanded .

If a U.S. parent is setting up a French subsidiary, and funds from the subsidiary will be periodically sent to the parent, the ideal situation from the parent's perspective is a ____ after the subsidiary is established.

When there is a permanent fall in the domestic money supply, the exchange rate:

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单

Sarah tells Rolph that he will receive 0.85 euro for every U.S. dollar he wants to convert for his trip to Italy. Sarah is referring to单项选择题

类似问题

A floating exchange rate is

An increase in demand for a currency, would, ceteris paribus, cause the currency to

A floating exchange rate is

If a person has Australian dollars and wishes to exchange them for Thai baht, which exchange rate would the person prefer? $1 = 24.13 baht or $1 = 26.13 baht

Which of the following factors is most likely to have caused the change shown in the diagram below? The Market for Malaysian Ringgit

Choose the combination of two words that best fill the gaps in the following sentence: If the Australian exchange rate falls (Australian dollar depreciates), the price to foreigners of Australian produced goods and services ____ and so the quantity of Australian dollars demanded ____.

If a U.S. parent is setting up a French subsidiary, and funds from the subsidiary will be periodically sent to the parent, the ideal situation from the parent's perspective is a ____ after the subsidiary is established.

When there is a permanent fall in the domestic money supply, the exchange rate:

更多留学生实用工具

希望你的学习变得更简单

Choose the combination of two words that best fill the gaps in the following sentence: If the Australian exchange rate falls (Australian dollar depreciates), the price to foreigners of Australian produced goods and services and so the quantity of Australian dollars demanded .