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If a U.S. importer can purchase 25,000 British pounds for $20,000, the rate of exchange is $0.80 = 1 British pound in the United States.

If a U.S. importer can purchase 25,000 British pounds for $20,000, the rate of exchange is $0.80 = 1 British pound in the United States. O $1 = 0.80 British pounds in the United States. $1 = 2.50 British pound in Great Britain. $1 = 1.25 British pounds in Great Britain

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