A U.S. importer wants to purchase merchandise from a German exporter invoiced in euros at a...
A U.S. importer wants to purchase merchandise from a German exporter invoiced in euros at a cost of €569,450. The U.S. importer’s bank quotes an exchange rate of €1.1389/$1.00. After accepting the quote, the bank _______ the importer's account in the amount of _______.
Multiple Choice
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debits; $569,450
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None of the options.
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credits; $648,546
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debits; $500,000
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credits; €569,450
Homework Answers
Credits amount
Amount = Amount in Euro*Exchange rate
= 569,450*1.1389= $648,546.605
Hence, the answer is
-
credits; $648,546
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