Kizspy Question: 14
(Choose 1 answer)
Consider a U.S. importer desiring to purchase merchandise from a Dutch exporter invoiced in euros, at a cost
of €512,100. 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 €1.0242/$1.00. The importer
accepts this price, so his bank will
the importer's account in the amount of
A. debit; $500,000
B. debit; $524,492
C. credit; $500,000
D. debit; €512,100
