4
QuizMultiple Choice

Currencies and Exchange Rates

Question 4 • IL-Economics

The best time for Americans to import French cheese is when they can

Answer
A
exchange a combination of goods and US dollars for euros.
B
buy the most euros for US dollars.
C
buy the most US dollars for euros.
D
exchange US dollars for pesos and then for euros.

Explanation

French cheese is priced in euros, so Americans importing it need euros to pay the seller. The best time to buy is when each US dollar can be exchanged for the greatest number of euros, making the purchase cheaper in dollars. That is choice B, “buy the most euros for US dollars.”

AI-written and checked against the verified answer.

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