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1. While Vietnam is one of the largest coffee producing countries in the world,

ID: 2637031 • Letter: 1

Question

1. While Vietnam is one of the largest coffee producing countries in the world, the Vietnamese dong (VND) is not widely traded. The coffee industry involves middlemen exporters who purchase coffee directly from small farmers. One such exporter, a traveling coffee buyer for the wholesale market, is traveling to Vietnam with an initial $10,000 for exchange. Which of the following currency rates and exchange commission fees would be in his or her best interest?

Currency exchange Rate (for exchange of $10,000) Commission Veitnamese bank rate VND 19,800 2.50% Saigon Airport exchange bureau rate VND 19,500 2.00% Hotel exchange bureau rate VND 19,400 1.50%

Explanation / Answer

19109

First case is best

Currency exchange Rate (for exchange of $10,000) Commission Net Value Veitnamese bank rate VND 19,800 2.50% 19305 Saigon Airport exchange bureau rate VND 19,500 2.00% 19110 Hotel exchange bureau rate VND 19,400 1.50%

19109

First case is best