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

Question

Quizplus · Accepted Answer

Traders would buy bananas where they are cheaper (Honduras) and sell them where they are more expensive (Guatemala), increasing demand and price in Honduras.

If the Dollar Buys Fewer Bananas in Guatemala Than in Honduras,then