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Exchanging one's currency in a foreign country may yield you an advantage, but there are...

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Exchanging one's currency in a foreign country may yield you an advantage, but there are other factors that determine your purchasing power. You have paid for a Japanese sushi meal in New York for $50. You have traveled to Japan and have a taste for the same meal. You get some yen from the bank and rate is US$1=110. You find a restaurant and the meal amounts to #8000. What has occurred? The meal was cheaper in Japan. b. The meal was cheaper in the U.S. The "Law of One Price" means that there is price parity for the same product. d. The Big Mac Index was in effect a. c. a. If we find a currency quote US$1.00 = Gambian Dalasis 49.00, what is a quick way of finding how much one dalasi a is equal to in U.S. Dollars? multiply 49 by 1% b. divide 49 by 1 divide 1 by 49 d. multiple 49 by 1/100 C. Plane Ticket (10 points) a Majeed is a British student planning to book a flight during winter break between the Chicago and France. He has US$700 but the flight cost 590 (euros) via Air France. He looks at the chart and notices two quotes. Can he afford to book the flight? 1 = $1.37 1=1.17 Again... the flight costs 590 (euros). Can his US$700 buy him the ticket? Show work

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