You hold $12,000 in cash and the exchange rate of USD (American dollar) to Venezuelan bolivar is 10.15. Calculate how much your $12,000 are worth in Venezuelan bolivars (you will need this number for the calculations below). Now, suppose that you hold as much cash in bolivars, as you found above. But the exchange rate of USD to Venezuelan bolivar goes down to 9.85. How much would your cash amount in bolivars be worth in USD? Question 29 options: A) $120 B) $11,643 $12,000 D) $12,365

A UK-manufactured car sells for GBP 14.000. A french-manufactured car sells for EUR 15.750.  If the EUR/GBP exchange rate is 1.17, how much does the french-made car cost in GBP? a. 13.467 b. 14.500 c. 16.380 d. 18.427

Imagine you are a German investor trying to decide whether to buy American or European bonds. A ten-year bond issued by America’s Treasury today offers about 3%; German bonds return only 1.2%. But buying American means taking a gamble on the euro-dollar exchange rate. You are interested in the return in euros. The bond issued in the US will be attractive only if the extra yield exceeds any expected loss due to swings in currency markets. This thinking explains why the dollar has recently soared against the euro. In July 2022 the dollar reached a one-for-one exchange rate with the euro for the first time since 2002. Is it always true that a currency appreciates in value when the interest rate it offers increases relative to foreign interest rates? Explain.

The following graph plots the forward premium for a foreign currency along the horizontal axis, while measuring the interest rate differential (between a home country and a foreign country) along the vertical axis. in refers to the interest rate in the home country, while if refers to the interest rate in a foreign country. On the following graph, use the blue line (circle symbol) to plot the combinations of the forward premium and interest rate differential that are consistent with interest rate parity (IRP). ih - if (%) 7 6 -7 -6 -5 -4 -3 -2 5 4 3 2 0 -1 -2 -3 -4 -5 -6 -7 -1 1 2 3 4 5 6 7 Forward Premium (%) IRP Line ?

Between 1879 and 1914, the world's major nations adhered to the gold standard. Under the gold standard, a country maintained a fixed relationship between its stock of gold and its money supply. Suppose that Germany defined a German mark as 30 grains of gold, and the United States defined $1 as 60 grains of gold. Under the gold standard, a German mark would have been worth U.S. dollars.

Assume that you buy a 1-year, 168,000-peso Philippine bond that pays 9 percent when the exchange rate is 1 Canadian dollar for 42 pesos. If, after one year, the peso falls to 1 Canadian dollar equals 45 pesos, how much have you gained or lost in Canadian dollars? Round your answer to the nearest dollar amount. loss * $ 4353

Answer last two questions

Options are gain or loss. Note : don't use chat gp8

Oolong tea is produced in China and sold in many countries. In the province of Fujian, per 100 grams of Oolong tea sells for 50 yuan. In Kuala Lumpur, per 100 grams of the same Oolong tea sells for RM20. Suppose that the exchange rate is RM0.45 1 yuan. Please do the following calculations based on the above information: 1. How much would it cost in Malaysian currency to buy the tea in Fujian? 2. How much would it cost in China currency to buy the tea in Kuala Lumpur?

How much of their local currency would someone from UK (local currency is Pound) need to buy an iPad that is being sold for #=$500 in the US?