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International Economics Olympiad, 2024, 7–11 классы, Financial Literacy Multiple choice questions

Тестовый вопрос

Assume that initially the exchange rate is 1 USD = 1 EUR. A company in Europe sells a product to a customer in the United States for $1,000. By the time the customer pays, the value of the European currency has strengthened by 20% compared to the US dollar. What will the final amount the company receives in its local European currency be?

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Ответ

As the Euro has strengthened, the new exchange rate is 1 USD = 1/1.2 0.83333 EUR. Thus, 1,000 USD if 833.33 $.

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