If the exchange rate is 2 Brazilian reals per dollar and a meal in Rio costs 20
ID: 2440773 • Letter: I
Question
If the exchange rate is 2 Brazilian reals per dollar and a meal in Rio costs 20 reals, then how many dollars does it take to buy a meal in Rio?
40 and your purchase will increase Brazil’s net exports.
10 and your purchase will increase Brazil’s net exports.
40 and your purchase will decrease Brazil’s net exports.
10 and your purchase will decrease Brazil’s net exports.
a.40 and your purchase will increase Brazil’s net exports.
b.10 and your purchase will increase Brazil’s net exports.
c.40 and your purchase will decrease Brazil’s net exports.
d.10 and your purchase will decrease Brazil’s net exports.
Explanation / Answer
Here 2 Brazilian reals is equal to 1 dollar. So, if a meal is cost 20 reals in Rio then it will be equivalent to 10 dollars. It means by $10 we can get the meal which is equivalent to 20 reals in Rio. This purchase of meal will increase the export of Rio. Because from Rio or in Rio we buy this meal. So we can say the answer is b , i.e 10 and your purchase will increase Brazil's net export. Ans. b.