Suppose a French car costs 22,000 Euro, and a similar Turkish car costs 300,000 TL. If Euro/TL exhange rate is 16.5, find real exchange rate approximately. Select one: а. 1.21 b. 0.66 c. 0.85 d. 0.99 e. 0.55

Suppose a French car costs 22,000 Euro, and a similar Turkish car costs 300,000 TL. If Euro/TL exhange rate is 16.5, find real exchange rate approximately. Select one: а. 1.21 b. 0.66 c. 0.85 d. 0.99 e. 0.55

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter6: An Introduction To The Foreign Exchange Market And The Balance Of Payments

Section: Chapter Questions

Problem 1E

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Question

Suppose a French car costs 22,000 Euro, and a similar Turkish car costs 300,000 TL.
If Euro/TL exhange rate is 16.5, find real exchange rate approximately.
Select one:
а. 1.21
b.0.66
C. 0.85
d. 0.99
е. 0.55

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