ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
$105.78
|
|
|
$101.41
|
|
|
$200.54
|
|
|
$247.35
|
Detailed explanation-1: -The formula is: Starting Amount (Original Currency) / Ending Amount (New Currency) = Exchange Rate. For example, if you exchange 100 U.S. Dollars for 80 Euros, the exchange rate would be 1.25.
Detailed explanation-2: -Calculate an FX rate using this simple formula: Your starting figure (in your local currency) divided by the final number (in the new foreign currency) = the exchange rate.
Detailed explanation-3: -◦ Real change = (1 + %chg nominal/100) /(1 + %chg price/100) = (1 + %chg nominal/100) /(1 + %chg price/100) = (1+12/100) / (1+5/100) = (1.066667). To calculate percent change, subtract 1 and multiply result by 100: result by 100: ◦ (1.06667 – 1) * 100 = 6.667%, or about 6.7% ◦ Check: Is answer close to 12%-5% = 7%?
Detailed explanation-4: -If a U.S. importer can purchase 10, 000 British pounds for $20, 000, the rate of exchange is: $1 = 2 British pounds in the United States. The current account in a nation’s balance of payments includes: its goods exports and imports, and its services exports and imports.