Question

Suppose we have the following exchange rate quotes: in US$ per US$ Euro area (€) 1.3570 .7369 Mexico (Ps) .0781 12.8057

a. If you have $250, you can get euros. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Use the €/$ 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 6,500,000 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 . (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)

Answer 1

A:

1USD = 0.7369 Euro

Hence 250 USD = 250*0.7369

=184.225Euros

B: 1 Euro is worth 1.3570 USD

C: 6500000 Euros = 6500,000*1.3570 USD

=8820500 USD

D: Cross Rate

The Cross rate is the rate between 2 currencies with a common currency as reference.