Question

If the dollar buys fewer bananas in Guatemala than in Honduras, then traders could make a profit by a. buying bananas in Honduras and selling them in Guatemala, which would tend to raise the price of bananas in Honduras. b. buying bananas in Guatemala and selling them in Honduras, which would tend to raise the price of bananas in Guatemala. c. buying bananas in Honduras and selling them in Guatemala, which would tend to raise the price of bananas in Guatemala. d. buying bananas in Guatemala and selling them in Honduras, which would tend to raise the price of bananas in Honduras.

Answer 1

Answer: C. buying bananas in Honduras and selling them in Guatemala, which would tend to raise the price of bananas in Guatemala.

Explanation: By buying the bananas from Honduras and selling in Guatemala to realise profits since they are cheaper in Honduras the price of same amount of bananas in Guatemala would be higher when they resale the bananas.

Answer 2

Answer:

c.

Explanation:

buying bananas in Honduras and selling them in Guatemala, which would tend to raise the price of bananas in Guatemala.