Foreign Exchange Rate between currencies of different countries

Subject: Business    / Finance
Question

QUESTION 1

You just returned from a trip to Venezuela and have 350 bolivares fuertes in your pocket. How many dollars will you receive when you exchange this money if the U.S. dollar equivalent of the bolivares fuertes is 0.1893?

QUESTION 2

The exchange rate is 1.106 Swiss francs per U.S. dollar. How many U.S. dollars are needed to purchase 5,680 Swiss francs?

QUESTION 3

Suppose the exchange rate between U.S. dollars and Swiss francs is SF 1.0576 = $1.00, and the exchange rate between the U.S. dollar and the euro is $1.00 = 1.1211 euros. What is the cross-rate of euros to Swiss francs (Euro/SF)?

Enter your answer rounded off to FOUR decimal points.

QUESTION 4

Suppose the exchange rate between U.S. dollars and Swiss francs is SF 1.2437 = $1.00, and the exchange rate between the U.S. dollar and the euro is $1.00 = 1.1136 euros. What is the cross-rate of Swiss francs to euros (SF/Euro)?

Enter your answer rounded off to FOUR decimal points.

QUESTION 5

The exchange rate is 1.1125 Swiss francs per U.S. dollar. How many U.S. dollars are needed to purchase 1 Swiss franc?

Enter your answer rounded off to two decimal points.

QUESTION 6

ABC Company sells 2,765 chairs a year at an average price per chair of $132. The carrying cost per unit is $22.27. The company orders 500 chairs at a time and has a fixed order cost of $120 per order. The chairs are sold out before they are restocked. What is the economic order quantity?

Enter your answer rounded off to two decimal points.

QUESTION 7

ABC Company sells 4,526 chairs a year at an average price per chair of $144. The carrying cost per unit is $32.08. The company orders 462 chairs at a time and has a fixed order cost of $84.5 per order. The chairs are sold out before they are restocked. What are the total shortage costs?

Enter your answer rounded off to two decimal points.

QUESTION 8

Your friend from Germany has decided to come and visit you in the United States. You estimate the cost of her trip at $7,755. What is the cost to her in euros if the U.S. dollar equivalent of the euro is 1.3203

QUESTION 9

You can exchange $1 for either C$1.2496 or ¥136.95. What is the cross rate between the Japanese yen and the Canadian dollar? That is, solve for ¥ per C$.

Enter your answer rounded off to two decimal points.

QUESTION 10

Suppose one U.S. dollar can purchase 153 yen today. If the yen depreciates by 3% tomorrow, how many yen could one U.S. dollar buy tomorrow?

Enter your answer rounded off to two decimal points.

QUESTION 11

In New York, you can exchange $1 for €0.7824 or £0.6025. Suppose that, in Berlin, £1 costs €1.1712. How much profit can you earn on $36,816 using triangle arbitrage?

Enter your answer rounded off to two decimal points.

QUESTION 12

ABC Company sells 4,313 chairs a year at an average price per chair of $125. The carrying cost per unit is $47.87. The company orders 303 chairs at a time and has a fixed order cost of $131 per order. The chairs are sold out before they are restocked. How many orders will company place if it follows the economic order quantity model?

Enter your answer rounded off to two decimal points.

QUESTION 13

ABC Company sells 2,362 chairs a year at an average price per chair of $145. The carrying cost per unit is $22.51. The company orders 225 chairs at a time and has a fixed order cost of $103.8 per order. The chairs are sold out before they are restocked. What are the total carrying costs?

Enter your answer rounded off to two decimal points.

QUESTION 14

Suppose the exchange rate between U.S. dollars and Swiss francs is SF 1.41 = $1.00, and the exchange rate between the U.S. dollar and the euro is $1.00 = 1.64 euros. What is the cross-rate of Swiss francs to euros? What is the cross-rate of euros to Swiss francs?

QUESTION 15

Suppose that 1 British pound currently equals 1.62 U.S. dollars and 1 U.S. dollar equals 1.62 Swiss francs. What is the cross rate of Swiss francs to British pound?

QUESTION 16

A trader observes that, in the spot exchange market, $1 can be exchanged for 9 Mexican pesos or for 111.23 Japanese yen. What is the cross-rate between the yen and the peso, that is, how many yen would you receive for every peso exchanged?