# Exchange rates (nominal, real)

Not what you're looking for?

One year ago Polish zloty was PLN 3.8000/USD. Since then the sloty has fallen 14% against the dollar. Price levels in the US have not changed, but Polish price has gone up 7%

-what is the nominal exchange rate today?

-what should be the exchange rate today, based on relative PPP and assuming last year was normal?

-Did the zloty depreciate or appreciate in real terms, relative to the dollar, by what percentage?

-using last year as the base, what is the real exchange rate of zloty against today?

##### Purchase this Solution

##### Solution Summary

The solution calculates Nominal exchange rates, whether zloty has appreciated or depreciated against the US dollar, exchange rate that should prevail based on relative PPP and real exchange rate.

##### Solution Preview

-what is the nominal exchange rate today?

Since the zloty has depreciated by 14 %

(Current exchange rate - last year's exchange rate )/ last year's exchange rate= 14%

or Current exchange rate/ last year's exchange rate - 1= 14%

or Current exchange rate/ last year's exchange rate = 1.14

Last year's ...

##### Purchase this Solution

##### Free BrainMass Quizzes

##### Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

##### Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

##### Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

##### Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

##### Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.