Finance, Forex and Investments

What is the real exchange rate between Canadian and Malaysian baskets of goods?

Consider a basket of consumer goods. The basket of goods costs $100 in Canada. The same basket of goods costs 300 ringgit in Malaysia. The nominal exchange rate is 4 ringgit per dollar. 8.1. What is the real exchange rate between Canadian and Malaysian baskets of goods? A. 2.5 baskets of Malaysian goods per basket of Canadian goods B. 0.8 basket of Malaysian goods per basket of Canadian goods C. 1.3 baskets of Malaysian goods per basket of Canadian goods D. 1 basket of Malaysian goods per basket of Canadian goods

Public Comments

1. Stumped. Make sure those are the right answers. hang on a tick, I thnk I see it. Dont know, YOUr answer is either A or C. thats a 50-50 chance to guess right. Cant be B or D. Because we know a Dollar is worth more than a Ringit.
2. ????????hi....are the options correct?
3. 100*4=400 300.... 300/400=0.75....i think c is the answer. really not sure.