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Foreign Exchange Quote

1. In a U.S. news paper, there is a quotation "Norway (Krone) U.S. $ equiv. 0.1601". What does that mean? (answer briefly).

2. If you are an American, and you agree to pay 100 Euro to another person in 6 months, who bears the currency fluctuation risk----you or the person you will pay? Why?

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1. In a U.S. news paper, there is a quotation "Norway (Krone) U.S. $ equiv. 0.1601". What does that mean? (answer briefly).
It means that if one has to purchase 1 Norway Krone it will cost US$ 0.1601.
Thus 1 US$ can ...

Solution Summary

The solution interprets a foreign exchange quote.

$2.19