Question

Suppose we have the following exchange rate quotes:
  

	in US$	per US$
Euro area (€)	1.3637	.7333
Mexico (Ps)	.0781	12.8025

  
a. If you have $150, you can get  euros. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Use the €/$ exchange rate in your calculation.)
  
b. One euro is worth $  . (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)
  
c. If you have 4,500,000 euros, you have $  . (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Use the $/€ exchange rate in your calculation.)

d. You can get  Mexican pesos for a euro. This type of rate is called             (Click to select)mixed rateexchange ratecross rateforeign currency . (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)

Answer 1

US$ 1.3637/euro

Euro 0.7333/$

US$ 0.781/Mexican pesos

12.8025 pesos/$

A. If I have $150 ,the number of euros I will have is :

So I will convert the dollar into euros using the exchange rate 0.7333 euros/ $

I get 0.7333* 150 = euros 109.99,

B. 1 euro = $1.3637

C. If I have euros

4,500,000 I will get,

6136650 dollars.

D.mixed exchange rates

I will multiply the Exchange rates

US$ 1.3637/ euros with 12.8025 pesos/$

So, I will get Mexican pesos/ euros = 12.8025*1.3637

=Pesos 17.4588/ euros