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8 February, 13:37

Suppose that the following situation exists in the foreign exchange market: 1 Canadian dollar buys $0.80 U. S, and 1 Canadian dollar buys 5.0 Chinese yuan. How many yuan will $1 U. S. buy?

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  1. 8 February, 13:40
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    6.25 yuan

    Explanation:

    Data provided in the question

    1 Canadian dollar buys = $0.80 U. S

    1 Canadian dollar buys = 5.0 Chinese yuan

    So, the $1 U. S buy number of yuan is

    = Number of 1 Canadian buys in Chinese yuan: number of 1 Canadian dollar buys in united stated

    = 5 : $0.80

    = 6.25 yuan

    We simply applied the above formula to determine the number of yuan needed for buying $1 U. S
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