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# The exchange rate between the currency of Country X and that

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Intern
Joined: 01 May 2009
Posts: 41
The exchange rate between the currency of Country X and that [#permalink]

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11 Aug 2009, 07:15
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Question Stats:

83% (01:39) correct 17% (01:16) wrong based on 30 sessions

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The exchange rate between the currency of Country X and that of Country Y has historically favored the currency of Country Y. Because of this, citizens of Country Y often take their vacations in Country X, where the exchange rate makes hotels and restaurants more affordable. Yet, citizens of Country Y rarely purchase clothing or electronics in Country X, despite the fact that those items are more expensive in their home country, even when sales taxes are taken into account.

Which of the following, if true, would best explain the buying habits of the citizens of Country Y?
A) Citizens of Country Y prefer the fashions available in their own country.
B) Stores in Country X receive the latest fashions and technology several months after they are available in Country Y.
C) The citizens of Country X resent the buying power of the currency of Country Y.
D) The government of Country Y imposes tariffs on imported goods.
E) The currencies of Country X and Country Y are both weak compared to the currency of Country Z.

Damn, in a 5 choice question like this, I usually can shortlist to 2 strong candidates (In this case, it's B and D). However, I always seem to overlook the OA.... My reasoning seems screwed all the time

Anyone mind explaining why B ain't the answer? I looked at the OA explanation, and still can't discard it as my choice...
Director
Joined: 05 Jun 2009
Posts: 817
WE 1: 7years (Financial Services - Consultant, BA)
Re: Currency Exchange - Manhattan Question [#permalink]

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11 Aug 2009, 07:36
1
KUDOS
B requires the assumption that (*Mostly all) citizens of country Y purchases the electronics and clothing at the time, or with-in the months, of launch of new fashion and technologies.

I also fell for the B. But what I thought was that tariffs are not meant for the individual buyers but for the corporations' imports/exports.
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Intern
Joined: 11 Aug 2009
Posts: 3
Re: Currency Exchange - Manhattan Question [#permalink]

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11 Aug 2009, 07:46
hey guys,
whats the answer.? is it D.?
Intern
Joined: 01 May 2009
Posts: 41
Re: Currency Exchange - Manhattan Question [#permalink]

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12 Aug 2009, 03:03
OA is D...
Senior Manager
Joined: 26 Jul 2009
Posts: 347
Re: Currency Exchange - Manhattan Question [#permalink]

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12 Aug 2009, 23:37
The options provided are not well constructed. D is open to interpretation and B is rather weak.
Senior Manager
Joined: 11 Dec 2008
Posts: 478
Location: United States
GMAT 1: 760 Q49 V44
GPA: 3.9
Re: Currency Exchange - Manhattan Question [#permalink]

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13 Aug 2009, 08:32
I just got this question wrong on my CAT exam. I don't like the question very much..
Intern
Joined: 30 Jul 2009
Posts: 4
Re: Currency Exchange - Manhattan Question [#permalink]

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13 Aug 2009, 21:29
Could explain why not A?
Director
Joined: 05 Jun 2009
Posts: 817
WE 1: 7years (Financial Services - Consultant, BA)
Re: Currency Exchange - Manhattan Question [#permalink]

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13 Aug 2009, 23:44
I think it's a right question for GMAT, and choices are clear.
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Re: Currency Exchange - Manhattan Question   [#permalink] 13 Aug 2009, 23:44
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# The exchange rate between the currency of Country X and that

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