a tourist from jordan is visiting saudi arabia, while a tourist from saudi arabia is visiting jordan. one saudi riyal is worth 0.20 jordanian dinars. who will this benefit and why?
a. it will benefit the tourist from saudi arabia because the riyal has more buying power than the dinar.
b. it will benefit the tourist from saudi arabia because the dinar has more buying power than the riyal.
c. it will benefit the tourist from jordan because the riyal has more buying power than the dinar.
d. it will benefit the tourist from jordan because the dinar has more buying power than the riyal.

Question

Accepted Answer

# Explanation:
## Step1: Analyze Exchange Rate
Given 1 Saudi riyal ($SAR$) = 0.20 Jordanian dinars ($JOD$). So, 1 $JOD$ = $ \frac{1}{0.20} = 5 $ $SAR$. This means the dinar has more buying power (since 1 dinar can buy more riyals) than the riyal.
## Step2: Determine Beneficiary
- Tourist from Jordan ($JOD$ holder) visiting Saudi Arabia: Spends $JOD$, but to spend in Saudi, they need $SAR$. Since $JOD$ is stronger (1 $JOD$ = 5 $SAR$), their money (dinar) has more buying power in Saudi (where $SAR$ is used). Wait, no—wait, the tourist from Jordan is in Saudi, so they exchange $JOD$ to $SAR$. Wait, no: the tourist from Jordan (with $JOD$) goes to Saudi (uses $SAR$). The exchange rate is 1 $SAR$ = 0.2 $JOD$, so to get 1 $SAR$, they pay 0.2 $JOD$. But a tourist from Saudi (with $SAR$) goes to Jordan (uses $JOD$): to get 1 $JOD$, they need 5 $SAR$ (since 1 $JOD$ = 5 $SAR$). Wait, no—let's re - express:

If 1 $SAR = 0.2$ $JOD$, then $JOD$ is stronger (1 $JOD = 5$ $SAR$). So:

- Tourist from Jordan (has $JOD$) in Saudi (needs $SAR$): Their $JOD$ can buy more $SAR$ (since 1 $JOD = 5$ $SAR$), so their money has more buying power in Saudi. But wait, the options:

Option D: "It will benefit the tourist from Jordan because the dinar has more buying power than the riyal." Let's check the options:

Option A: "It will benefit the tourist from Saudi Arabia because the riyal has more buying power than the dinar." No, because 1 $SAR = 0.2$ $JOD$, so $JOD$ is stronger.

Option B: "It will benefit the tourist from Saudi Arabia because the dinar has more buying power than the riyal." The tourist from Saudi is in Jordan, so they use $SAR$ to buy $JOD$. Since $JOD$ is stronger, their $SAR$ can buy less $JOD$, so this is wrong.

Option C: "It will benefit the tourist from Jordan because the riyal has more buying power than the dinar." No, $JOD$ (dinar) is stronger.

Option D: "It will benefit the tourist from Jordan because the dinar has more buying power than the riyal." The tourist from Jordan is in Saudi (using $SAR$). Their $JOD$ (dinar) can be exchanged for $SAR$, and since $JOD$ is stronger (1 $JOD = 5$ $SAR$), each dinar can buy more riyals, so their money has more buying power in Saudi. So the tourist from Jordan benefits because dinar (their currency) has more buying power than riyal.

# Answer:
D. It will benefit the tourist from Jordan because the dinar has more buying power than the riyal.

Sovi.AI - AI Math Tutor

QUESTION IMAGE

Question

Explanation:

Step1: Analyze Exchange Rate

Step2: Determine Beneficiary

Answer: