General Education Development (GED) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the GED Test. Ace with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

If the exchange rate between the Euro (€) and the U.S. dollar ($) is $2.5 to €1, how many dollars would it take to purchase a plane ticket that costs €1580.00?

$39,500.00
$3,950.00
$395.00
$632.00

The correct answer is: $3,950.00

To determine how many U.S. dollars are needed to purchase a plane ticket that costs €1580.00 when the exchange rate is $2.5 for every €1, you simply need to multiply the euro amount by the exchange rate. This means calculating: €1580.00 * $2.5/€1 = $3950.00. Thus, the correct amount of dollars required to purchase the ticket is $3,950.00. The choice aligns correctly with the calculation, confirming that the understanding of currency conversion based on the defined exchange rate is accurately applied. The other choices offer different dollar amounts that stem from either miscalculations or misunderstandings of how currency exchange works, such as dividing instead of multiplying or using incorrect figures altogether. In this case, recognizing that the ticket price in euros directly multiplies by the exchange rate provides clarity on the conversion process.