Suppose that Nevada Co., a US-based MNC, makes regular, monthly purchases of materials from a German supplier named Spicurity. These regular payments are typically in the amount of 500,000 euros. Last month the exchange rate was $1.79 per euro. Nevada Co. only has cash reserves in dollars, while Spicurity only has cash reserves in euros. Suppose both companies use the same bank. In order to conduct this transaction last month, Nevada Co. required s transaction reduced Nevada's account by this amount, denominated in and credited it to Spicurity's account. to pay for the materials. Thus, the bank handling the The bank then converted this amount to Back to Assignment Attempts 3. Bid/Ask spread 1. Score/4 2. TOTAL SCORE: 0/4 3. STEP: 1 of 4 Assume that you plan to take a vacation in France, which uses the euro as its currency. You have $2,600.00 saved up for the trip. The ask rate at your I bank is $1.25 per euro. When you convert your $2,600.00 to euros, you will be able to purchase euros. Grade Step 1 complete and the