Reading 18: Currency Exchange Rates-LOS a, (Part 2)习题精选 2010, face, exchange, foreign, bottle

土豆妮

Session 4: Economics: Economics for Valuation
Reading 18: Currency Exchange Rates

LOS a, (Part 2): Convert direct (indirect) foreign exchange quotations into indirect (direct) foreign exchange quotations.

 

 

 

If the exchange rate is JPY120/USD1, a bottle of rice wine that costs JPY2,400 costs:

A) USD 20.

B) USD 24.

C) USD 200.

土豆妮

If the exchange rate is JPY120/USD1, a bottle of rice wine that costs JPY2,400 costs:

A) USD 20.

B) USD 24.

C) USD 200.

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If USD1 buys JPY120, USD20 buys JPY2,400, which is the price of the bottle of wine. (USD/JPY120) × (JPY2,400/wine) = USD20/wine

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Given an indirect quote of 2.2254 CHF/GBP, what is the direct quote?

A) 4.4940 GBP/CHF.

B) 0.0449 GBP/CHF.

C) 0.4494 GBP/CHF.

土豆妮

Given an indirect quote of 2.2254 CHF/GBP, what is the direct quote?

A) 4.4940 GBP/CHF.

B) 0.0449 GBP/CHF.

C) 0.4494 GBP/CHF.

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0.4494 GBP/CHF is the reciprocal of 2.2254 CHF/GBP.

土豆妮

In the U.S., the indirect quote of 0.827541 euros per U.S. dollar (EUR/USD) is the equivalent of a direct quote of:

A) 0.0012 USD/EUR.

B) 1.2084 USD/EUR.

C) 0.1208 USD/EUR.

土豆妮

In the U.S., the indirect quote of 0.827541 euros per U.S. dollar (EUR/USD) is the equivalent of a direct quote of:

A) 0.0012 USD/EUR.

B) 1.2084 USD/EUR.

C) 0.1208 USD/EUR.

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1.2084 USD/EUR is the reciprocal of 0.827541 EUR/USD.

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If the exchange rate value of the CAD goes from USD 0.60 to USD 0.80, then the CAD:

A) depreciated and Canadians will find U.S. goods more expensive.

B) depreciated and Canadians will find U.S. goods cheaper.

C) appreciated and Canadians will find U.S. goods cheaper.

土豆妮

If the exchange rate value of the CAD goes from USD 0.60 to USD 0.80, then the CAD:

A) depreciated and Canadians will find U.S. goods more expensive.

B) depreciated and Canadians will find U.S. goods cheaper.

C) appreciated and Canadians will find U.S. goods cheaper.

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The CAD is now more expensive in terms of USD, and thus it has appreciated. Therefore, each CAD yields more USD than before, and Canadians are able to purchase more U.S. goods with each CAD, making U.S. goods relatively cheaper.

土豆妮

In Japan, the direct quote of 108.82 Japanese yen per U.S. dollar (JPY/USD) is the equivalent of an indirect quote of:

A) 0.091895 USD/JPY.

B) 0.918949 USD/JPY.

C) 0.009189 USD/JPY.

土豆妮

In Japan, the direct quote of 108.82 Japanese yen per U.S. dollar (JPY/USD) is the equivalent of an indirect quote of:

A) 0.091895 USD/JPY.

B) 0.918949 USD/JPY.

C) 0.009189 USD/JPY.

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0.009189 USD/JPY is the reciprocal of 108.82 JPY/USD.