Many people were surprised when Indonesia became the one of the largest rubber producing country in the world in recent years, after Brazil and Vietnam. The Indonesian Rupiah, Rp, is managed currency and not traded widely. You are a trader and purchase rubber for manufacturing the tires. As you reach Indonesia, you find different exchange rates are offered by different dealers with their commission fees. If you have 21,000 Euros with you, which dealer is in your best interest to exchange the money from Euro to Indonesian Rupiah Currency Exchange Rate Rp/$ Rate Rp/Euro Commission Indonesia Bank Rate 14589.70 17096.17 2.25% Airport Rate 14597.20 17099.17 2.75% Exchange Rate Hotel 14596.10 17098.00 2.00%

Many people were surprised when Indonesia became the one of the largest rubber producing country in the world in recent years, after Brazil and Vietnam. The Indonesian Rupiah, Rp, is managed currency and not traded widely. You are a trader and purchase rubber for manufacturing the tires. As you reach Indonesia, you find different exchange rates are offered by different dealers with their commission fees. If you have 21,000 Euros with you, which dealer is in your best interest to exchange the money from Euro to Indonesian Rupiah Currency Exchange Rate Rp/$ Rate Rp/Euro Commission Indonesia Bank Rate 14589.70 17096.17 2.25% Airport Rate 14597.20 17099.17 2.75% Exchange Rate Hotel 14596.10 17098.00 2.00%

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter36: Exchange Rates And Financial Links Between Countries

Section: Chapter Questions

Problem 13E

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Currency Exchange	Rate Rp/$ Rate Rp/Euro	Commission

Indonesia Bank Rate	14589.70 17096.17	2.25%

Airport Rate	14597.20 17099.17	2.75%

Exchange Rate Hotel	14596.10 17098.00	2.00%