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Chapter 18 - 1 Use the information below to answer the...

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1. Use the information below to answer the following questions. U.S. $ EQUIVALENT CURRENCY PER U.S. $ Poland Zloty 0.3053 3.3707 Euro 1.3166 0.7595 Mexican Peso 0.0761 13.1406 Switzerland Franc 0.8847 1.1326 Chilean Peso 0.001738 575.37 New Zealand Dollar 0.6619 1.5108 Singapore Dollar 0.5752 1.7385 Requirement 1: If you have $100, how many Polish zlotys can you get? (Do not include the Polish zlotys sign (Z). Round your answer to 2 decimal places (e.g., 32.16).) Amount Z Requirement 2: How much is one euro worth? (Do not include the dollar sign ($). Round your answer to 4 decimal places (e.g., 32.1616).) Worth of one euro $ Requirement 3: If you have 4.00 million euros, how many dollars do you have? (Do not include the dollar sign ($). Enter your answer in dollars, not millions of dollars (e.g., 1,234,567). Round your answer to the nearest whole dollar amount (e.g., 1,234,567).) Amount $ Requirement 4: Which is worth more, a New Zealand dollar or a Singapore dollar? New Zealand dollar Requirement 5: Which is worth more, a Mexican peso or a Chilean peso?
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Mexican peso Requirement 6: (a) How many Swiss francs can you get for a euro? (Round your answer to 4 decimal places. (e.g., 32.1616).) Amount SF/€ (b) What do you call this rate? Cross rate Explanation: Using the quotes from the table, we get: 1: $100(Z3.3707/$1) = Z337.07 2: $1.3166 3: €4,000,000($1.3166/€) = $5,266,400 Alternatively the question can be answered as: €4,000,000 / ($0.7595/€) = $5,266,623 The difference is due to rounding in the exchange rate quote. 4: New Zealand dollar 5: Mexican peso 6: (a) (SF1.1326/$)($1.3166/€) = 1.4912 SF/€ (b) This is a cross rate.
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2. Use the information below to answer the questions that follow. U.S. $ EQUIVALENT CURRENCY PER U.S. $ U.K. Pound (£) 1.4769 0.6771 Canada dollar .8051 1.2421 Requirement 1: Which would you rather have, $100 or £100? 100 Pounds Requirement 2: Which would you rather have, $100 Canadian or £100? 100 Pounds Requirement 3: (a) What is the cross-rate for Canadian dollars in terms of British pounds? (Do not include the canadian dollar sign (C$). Round your answer to 4 decimal places (e.g., 32.1616).) Cross-rate C$ /£1 (b) What is the cross-rate for British pounds in terms of Canadian dollars? (Do not include the pound sign (£). Round your answer to 4 decimal places (e.g., 32.1616).) Cross-rate £ /C$ Explanation: 1: You would prefer £100, since: (£100)($1.4769/£1) = $147.69 2:
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You would still prefer £100. Using the $/£ exchange rate and the C$/$ exchange rate to find the amount of Canadian dollars £100 will buy, we get: (£100)($1.4769/£1)(C$1.2421/$1) = C$183.45 3: (a) Using the quotes in the book to find the C$/£ cross rate, we find: (C$1.2421/$1)($1.4769/£1) = C$1.8345/£1 (b) The £/C$ exchange rate is the inverse of the C$/£ exchange rate, so: £1/C$1.8345 = £0.5451/C$ 3.
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