Calculate the real exchange rate, considering nominal exchange rate 15, domestic Price Index = 250 and foreign Price Index = 200.

CA Foundation · Business Economics · PYQS · May 2026
Calculate the real exchange rate, considering nominal exchange rate 15, domestic Price Index = 250 and foreign Price Index = 200.
(A) A. 12.25
(B) B. 15.50
(C) C. 18.75
(D) D. 9.60

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. 18.75

Topics: International Trade

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