Confused about exchange rates?

Question

I know that 1 dollar is equal to 117 yen. So lets say a medium drink costs $1.00. If I go to Japan will a medium drink cost 117 yen or can I buy 117 medium drinks. I'm confused.

Answer 1

If 1 dollar equals 117 yen, and if a medium drink costs $1, then a medium drink costs 117 yen, provided that the cost of living is the same in Japan. No way you can get 117 medium drinks for 117 yen. 117 medium drinks would cost you 13,689 yen.