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Business, 04.11.2019 23:31 melanie7152

Consider a u. s. importer desiring to purchase merchandise from a dutch exporter invoiced in euros, at a cost of €160,000. the u. s. importer will contact his u. s. bank (where, of course, he has an account denominated in u. s. dollars) and inquire about the exchange rate, which the bank quotes as €0.6250/$1.00. the importer accepts this price, so his bank will proceed to the importer's account in the amount of

a) credit; €512,100
b) credit; $500,000
c) debit; €100,000
d) debit; $256,000

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