HW _5 Fall 2010

HW _5 Fall 2010 - Brigham Young University Institute of...

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Brigham Young University Institute of Business Management ManEc 453 Money, Banking and Financial Markets Problem set #5 Due: October 7, 2010 Questions 1. In the WSJ for Wednesday, October 6 compare the exchange rate per US dollar of the foreign currencies of Japan, UK, Brazil, Argentina, China, Mexico and the Euro with the exchange rates given in the "Tools of the Trade" box on page 225 of the text. Has the dollar appreciated or depreciated against these currencies since February 21, 2007 (and by what percent has each changed). Current 2007 % Change Japan 82.89 120.88 -31.43% depreciate UK 1.59 0.51 210.57% appreciate Brazil 1.68 2.08 -19.26% depreciate Argentina 3.96 3.11 27.37% appreciate China 6.69 7.75 -13.67% depreciate Mexico 12.48 10.99 13.50% appreciate Euro 1.39 0.76 83.09% appreciate 2. When the euro appreciates, are you more likely to drink California or French wine? Why? We will buy California wine, because when the euro appreciates it takes more dollars to buy french wine. 3.
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This note was uploaded on 03/17/2011 for the course MANEC 453 taught by Professor Jerrynelson during the Fall '10 term at BYU.

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HW _5 Fall 2010 - Brigham Young University Institute of...

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