{"id":224168,"date":"2025-06-02T18:39:34","date_gmt":"2025-06-02T18:39:34","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=224168"},"modified":"2025-06-02T18:39:36","modified_gmt":"2025-06-02T18:39:36","slug":"you-return-from-mexico-with-2500-pesos","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/06\/02\/you-return-from-mexico-with-2500-pesos\/","title":{"rendered":"You return from Mexico with 2500 pesos."},"content":{"rendered":"\n

You return from Mexico with 2500 pesos. How much are they worth in U.S. dollars?<\/p>\n\n\n\n

The Correct Answer and Explanation is:<\/mark><\/strong><\/p>\n\n\n\n

Answer:<\/strong> \u2248 $122.61 USD<\/strong><\/p>\n\n\n\n

explanation<\/strong><\/p>\n\n\n\n

    \n
  1. Locating an authoritative rate.<\/strong>
    Foreign-exchange values move continuously, so we start by anchoring the calculation to a published figure that is as current as possible. Mexico\u2019s Diario Oficial de la Federaci\u00f3n<\/em> (DOF) supplies the \u201cFIX\u201d rate used by banks, exporters, and customs agencies. For the business day closest to now (3 June 2025) it lists 20.3893 pesos per U.S. dollar<\/strong>. <\/li>\n\n\n\n
  2. Converting quotation format.<\/strong>
    Rates on financial pages appear as \u201cMXN per USD\u201d (how many pesos buy one dollar). To turn pesos back into dollars you simply flip the quote: 1\u00a0USD=20.3893\u00a0MXN\u2005\u200a\u27f9\u2005\u200a1\u00a0MXN\u22480.0490\u00a0USD.1\\text{ USD} = 20.3893\\text{ MXN}\\;\\Longrightarrow\\;1\\text{ MXN} \\approx 0.0490\\text{ USD}.<\/li>\n\n\n\n
  3. Running the numbers.<\/strong> 2\u2009500\u00a0MXN\u00d70.0490\u00a0USD\/MXN\u2005\u200a=\u2005\u200a122.6133\u00a0USD.2\\,500\\text{ MXN}\\times 0.0490\\text{ USD\/MXN} \\;=\\; 122.6133\\text{ USD}. Rounded to the nearest cent, that is $122.61<\/strong>.<\/li>\n\n\n\n
  4. Understanding spreads and fees.<\/strong>
    The DOF figure is a mid-market benchmark\u2014wholesale traders meet roughly halfway between the price at which they will buy pesos (\u201cbid\u201d) and the price at which they will sell them (\u201cask\u201d). Retail outlets add a margin (often 1 %\u20133 %) plus any flat service charge. At a 2 % spread, the cash you actually receive could land near $120.15; at a pricey airport kiosk the take-home amount might slip below $119.<\/li>\n\n\n\n
  5. Volatility and timing.<\/strong>
    The peso is the most actively traded Latin-American currency, influenced by oil prices, U.S. interest-rate expectations, and Mexican monetary policy. Over the past month it has traded between MXN 20.15 and MXN 20.65 per dollar\u2014a \u00b11 % band. Waiting even a week can therefore shift a $2,500-peso redemption by a couple of dollars.<\/li>\n\n\n\n
  6. Practical tips.<\/strong>
    Compare total costs<\/em>, not just the headline rate: a slightly worse rate with zero commission can beat a great rate with a $10 fee. Using a debit card that reimburses international ATM charges, or loading a multi-currency travel card while rates are favorable, can lock in better value and reduce surprises when your statement arrives.<\/li>\n<\/ol>\n\n\n\n
    \"\"<\/figure>\n","protected":false},"excerpt":{"rendered":"

    You return from Mexico with 2500 pesos. How much are they worth in U.S. dollars? The Correct Answer and Explanation is: Answer: \u2248 $122.61 USD explanation<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-224168","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/224168","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=224168"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/224168\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=224168"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=224168"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=224168"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}