Question

If the exchange rate between the U.S. dollar and the Canadian dollar is 1:1.3,

which of the following is true?
O A. A $5 item costs three times as much in Canada as it does in the
United States.
B. A $5 item costs three times as much in the United States as it
does in Canada.
O C. It costs more to buy a $5 item in Canada than it does in the United
States.
D. It costs less to buy a $5 item in Canada than it does iralline United
States.

Answer 1

D. It costs less to buy a $5 item in Canada than it does in the United

States

Explanation:

Given: exchange rate between the U.S. dollar and the Canadian dollar is 1:1.3

To find: the correct option

Solution:

As exchange rate between the U.S. dollar and the Canadian dollar is 1:1.3, it means that 1 U.S. dollar is equal to 1.3 Canadian dollar

So, it costs less to buy an item in Canada than it does in the United

States.

Therefore,

It costs less to buy a $5 item in Canada than it does in the United

States