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Reading 19: Foreign Exchange Parity Relations - LOS a ~ Q

Q1. If the exchange rate value of the euro goes from $0.95 to $1.10, then the euro has:
     

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

B)   depreciated and the Dutch will find U.S. goods cheaper.

C)   appreciated and the Dutch will find U.S. goods cheaper.

Q2. You observe that the exchange rate for pesos is 8 per U.S. dollar, and the exchange rate for Danish krones is 6 per U.S. dollar. What is the peso to krone (MXN/DKK) exchange rate?
     

A)   1.333.

B)   Cannot be determined with the data given.

C)   0.750.

Q3. Currency quotes at the closing of the European market were 105 yen/$ and 0.9350 $/

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