Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Question
Chapter 6, Problem 3E
To determine
(a)
To find:
Whether the dollar faces an appreciation or a depreciation against the krona.
To determine
(b)
To find:
Whether the kronafaces an appreciation or a depreciation against the dollar.
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If the US dollar price of a Swedish krona changes from $.1572 to $.1730 had the dollar appreciated or depreciated against the krona and/ or krona and the dollar ?
The U.S. dollar exchange rate increased from $0.96 Canadian in June 2011 to $1.03 Canadian in June 2012, and it decreased from 81 Japanese yen in June 2011 to 78 yen in June 2012.
1. Did the U.S. dollar appreciate or depreciate against the Canadian dollar? Did the U.S. dollar appreciate or depreciate against the yen?
2. What was the value of the Canadian dollar in terms of U.S. dollars in June 2011 and June 2012? Did the Canadian dollar appreciate or depreciate against the U.S. dollar over the year June 2011 to June 2012?
3. What was the value of 100 yen in terms of U.S. dollars in June 2011 and June 2012? Did the yen appreciate or depreciate against the U.S. dollar over the year June 2011 to June 2012?
What does it mean to say that the U.S. dollar has depreciated in value in relation to the Mexican peso? What does it mean to say that the Mexican peso has appreciated in value relative to the U.S. dollar?
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- If people expect the British pound to appreciate versus the dollar over the coming year, they will ____, and the pound will____. The US dollar will_____ versus the British pound.A. sell pounds in a year, depreciate in a year, appreciate in a year B. buy pounds today, appreciate today, depreciate today C. buy pounds in a year, appreciate in a year, depreciate in a year D. sell pounds today, depreciate today, appreciate todayarrow_forwardSarah Shetty in Milan. Sarah Shetty lives in Milan, Italy. She can buy a U.S. dollar for EUR0.9067. Alex North, living in Chicago, can buy a euro for USD1.1236. What is the foreign exchange rate between the dollar and the euro? a. The foreign exchange rate between the dollar and the euro in Milan is $ __/€. b. The foreign exchange rate between the euro and the dollar in Chicago is $ __/€.arrow_forwardA British pound costs $1.42 in U.S. dollars in 2018, but $1.55 in U.S. dollars in 2019. Calculate the cost of a U.S. dollar in terms of a British pound in 2018 and 2019. Show your work.arrow_forward
- 1) A British pound cost $2.00 in U.S. dollars in 2008, but $1.27 in U.S. dollars in 2017. Was the pound weaker or stronger against the dollar? Did the dollar appreciate or depreciate versus the pound?arrow_forwardYou own a local company. In the past year, you successfully expanded your sales market into Europe, and you now have profits and cash denominated in euros. You want to convert the euros to your home country currency to repatriate the profits and pay taxes. You are a. not required to convert the euros to the home currency to pay taxes. b. a demander of the euro in the foreign exchange market. c. a supplier of your home country's currency in the foreign exchange market. d. a demander of your home country's currency in the foreign exchange market.arrow_forwardThe following table gives today's exchange rates Foreign Exchange Rates -- H.10 Weekly (Rates in currency units per U.S. dollar) COUNTRY BRAZIL CANADA CHINA, P.R. DENMARK HONG KONG What is the price of 1 Krone in Reals? CURRENCY REAL DOLLAR YUAN KRONE DOLLAR Today 5.2078 1.287 6.6899 7.0175 7.845arrow_forward
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