Suppose you wake up one morning and find the following exchange rates: $1 = ¥100, ¥1 = €0.05, and €1 = $0.50. What is the direct exchange rate between dollars and euros?"

A) $1 = €0.05
B) $1 = €2
C) $1 = €1
D) $1 = €0.50

Q&A Education