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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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View Full Document 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.
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, $100 Canadian or £100?
100 Pounds
Requirement 3:
(a)
What is the crossrate for Canadian dollars in terms of British pounds?
(Do not include the canadian dollar sign
(C$). Round your answer to 4 decimal places (e.g., 32.1616).)
Crossrate
C$ /£1
(b)
What is the crossrate 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).)
Crossrate
£ /C$
Explanation:
1:
You would prefer £100, since:
(£100)($1.4769/£1) = $147.69
2:
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View Full Document 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:
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This note was uploaded on 02/24/2011 for the course ACCT 416 taught by Professor Staff during the Winter '08 term at USC.
 Winter '08
 staff

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