Question

Comparing Cheap Dates Around the World. Comparison of prices or costs across difforent country and oumency environments requines transiation of the local oumency into a single common cumency. This is most meaningful when the comparison is for the identical or near-identicel product or service across countries Deutsche Bank has recently started publishing a comparison of cheap dates-and evening on the town for two to eat at McDonald's, see a movie, and drinka beer Once all costs are converted to a common cumency, the U.S. dollar in this case, the cost of the date can be compared across cities relative to the base case of a cheap date in USD in New York City. Alter completing the table answ the folowing questions a. Which city in the table is truly the cheapest dabe? b. Which city in the table is the most expensive-cheap date? e E the exchange rate in Mosoow on the Russian ruble (RUB) was USDO.0491/RUB, Inetead of USD0 0283/RUB, what wouid be the USD price? d. if the exchange rate in Shanghail was CNY8 79/USD, what would be its cost in USD and relative to a cheap date in New York City а.which city ite atie ls truythe apest ? (Select he best choice belo. ) OA. The ndycheapest cheap date could be had The truy cheapest cheap date m d be had n wmb" i da orey 25% of what ' costs in New York City The nay choapest cheap dam could be had in Me ecocny. Mnoo. at orey 25% of what 리 costs in New Yo* Cay moneycheapestcheap date could be had Jakarta, indonesia, at ony 25% of wha"costs New York Cty Maria, peilpnea, 0ที o ey 2S% of what 4costs rNew Yurkcay ou. OC. OD.

Answer 1

Question: Which city in the table is truly the cheapest date?

Answer: B. The Truly Cheapest date could be had in Mumbai, India, at only 25% of what it Costs in New York City.

Explanations:

Calculation of Cheap date cost in US $:

Country	Cheap date in Local Currency	Exchange Rate per (US $ / 1 )	Cheap date Cost in $
	A	B	= A*B
Australia	111.96	$ 0.9290	$    104.01
Brazil	135.43	$ 0.4363	$      59.09
Canada	78.33	$ 0.9106	$      71.33
China	373.87	$ 0.1619	$      60.53
France	75.57	$ 1.3702	$    103.55
Germany	76.49	$ 1.3702	$    104.81
Hong Kong	467.03	$ 0.1289	$      60.20
India	1,379.64	$ 0.0167	$      23.04
Indonesia	314,700.00	$ 0.0001	$      31.47
Japan	10,269.07	$ 0.0097	$      99.61
Malaysia	117.85	$ 0.3048	$      35.92
Mexico	423.93	$ 0.0769	$      32.60
New Zealand	111.52	$ 0.8595	$      95.85
Philippines	1,182.88	$ 0.0222	$      26.26
Russia	2,451.24	$ 0.0283	$      69.37
Singapore	77.89	$ 0.7939	$      61.84
South Africa	388.58	$ 0.0946	$      36.76
United Kingdom	73.29	$ 1.6566	$    121.41
United States - New York	93.20	$ 1.0000	$      93.20
United States - San Francisco	88.72	$ 1.0000	$      88.72

We can see that the cost of date is $ 23.04 in India as compared to $93.20 in New York. This is around 25% (23.04/93.20). Hence, we can say that the Truly Cheapest date could be had in Mumbai, India, at only 25% of what it Costs in New York City.