If the bank is selling francs for $0.45, then what is the implied franc price of the dollar ?
Correct answer: D. 2.222
- A. 2.0
- B. 1.999
- C. 2.323
- D. 2.222
Explanation
If one franc costs $0.45, one dollar buys 1 divided by 0.45, or approximately 2.222 francs. The implied franc price of the dollar is therefore 2.222 francs per dollar.
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