foreign exchange market
Not what you're looking for?
A bicycle manufactured in the United States costs $100. Using the
exchange rates listed in the table to the right, what would the bicycle
cost in each of the following countries?
a) Argentina
b) Britain
c) Canada
Country U.S. $ per Currency Currency per U.S. $
Argentina (peso) 0.3269 3.0590
Australia (dollar) 0.7543 1.3257
Britain (pound) 1.7705 0.5648
Canada (dollar) 0.8583 1.1651
China (renminbi) 0.1240 8.0655
Israel (shekel) 0.2165 4.6189
Japan (yen) 0.0087 114.42
Mexico (peso) 0.0947 10.5652
New Zealand (dollar) 0.6917 1.4457
Russia (ruble) 0.0349 28.670
Singapore (dollar) 0.6105 1.6380
Switzerland (franc) 0.7876 1.2697
EU (euro) 1.2154 0.8262
Note: the second column lists U.S. dollars per unit of foreign currency, or how much one unit of foreign currency is worth in U.S. dollars. The third column lists units of foreign currency per U.S. dollar, or how much 1 U.S. dollar is worth in foreign currency.
Purchase this Solution
Solution Summary
The foreign exchange market is illustrated in the solution.
Solution Preview
The only thing that needs to be done here is that you have to calculate the equivalent currency unit in each of the destination countries. This means you need to find the value of $100 in each of those ...
Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.