1. What is the price of 1 US dollar in terms of each of the following currencies, given the following exchange rates?                 a. 1 euro = $1.41                 b. 1 Chinese yuan = $.15                 c. 1 Israeli shekel = $.28                 d. 1 Kuwaiti dinar = $3.60

Q: The current exchange rate between the United States and Britan is $2.0 per pound. The 6- month…

A: Given, The exchange rate is $2.0 per pound The six month forward rate is $1.95 per pound Interest…

Q: The exchange rate between the British pound and the Australian dollar (GBP/AUD) is 0.4220, it means…

A: Exchange rate between the British pound and the Australian dollar (GBP/AUD) is 0.4220

Q: Suppose the Japanese yen exchange rate is ¥107 = $1 and the British pound exchange rate is £1 =…

A: Cross rate refers to the exchange rate of any two currencies whose quote is not published. A…

Q: TIPS FOR READING AN EXCHANGE RATE CHART: Read down the chart. For example, in column 1 it says the…

A: Depreciation of a currency means that the value of the currency with respect to the other decreases,…

Q: Currently, $1 = SAR 25, SAR 1 = 0.025 Yen. What is the exchange rate between the U.S. dollar and the…

A: The exchange rate of US Dollar (USD) and Japanese Yen (JPY) can be calculated with the help of cross…

Q: Table 2 gives the exchange rate quotations for the U.S. dollar and the British pound. Table 2.…

A: a) U.S Dollar equivalent means, amount of dollars for each pound Currency per dollar means, amount…

Q: Let the NZ$-Euro exchange rate be 0.60 (1 NZD buys 0.60 Euro). Let the NZ price level (P) be 40 and…

A: Real exchange rate or RER is that exchange rate which is inflation adjusted i.e. rate is adjusted…

Q: The Chinese Yuan is currently exchanged at 1 Chinese Yuan = 0.13 Euro. The Euro trades at a 3%…

A: Nominal interest rate is referred to as an interest rate, which is before taking the inflation rate…

Q: TIPS FOR READING AN EXCHANGE RATE CHART: Read down the chart. For example, in column 1 it says the…

A: The foreign exchange rates: The foreign exchange rates refer to the trading of one currency for…

Q: If it takes 1.25 euros to buy 1 US dollar, the direct quote for the exchange rate in Europe is: A.…

A: direct quotes states what amount of domestic currency required to buy one unit of foreign currency.

Q: In the spot market $1 = 5 Euro, 1 Euro = 25 Canadian Dollar, and 1 Canadian Dollar = 0.75 Japanese…

A: $1 = 5 Euro 1 Euro = 25 Canadian dollar 1 Canadian dollar = 0.75 Japanese Yen

Q: Aa An exchange rate is the price of one country's currency expressed in another country's currency.…

A: Exchage rate: The value of the currency of one country in the terms of the current of another…

Q: Suppose the exchange rate between the U.S. dollar and the Swedish krona was 9.1 krona = $1 and the…

A: given, 9.1 krona = $1 ( this is indirect quotation) 1 pound = $1.3 ( this is direct quotation)…

Q: Suppose Dassie Bank quoted the exchange rate of Singapore dollar in US$ at $0.60, the pound rate in…

A: Foreign exchange currency rates are those rates which are used for exchange of one foreign currency…

Q: 1)  Assume the following exchange rates are indirect quotes, what are the equivalent direct quotes…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Suppose the Japanese yen exchange rate is ¥109 = $1 and the British pound exchange rate is £1 =…

A: In finance, a currency exchange rate represents the value of one country's currency against per unit…

Q: Calculate the possible rate for buying GBP

A: Triangular arbitrage is the process where two related goods set the third price. The FX cross…

Q: Assume that the nominal exchange rate is equal to 10 Hong Kong dollar/British pound, the UK…

A: Nominal exchange rate = 10 Hongkong dollar/ British Pound UK inflation rate = 1% Hongkong inflation…

Q: 1. Assume the following exchange rates for the New Zealand dollar in terms of the US dollar: North…

A: Locational arbitrage is possible when there are discrepancies in the quotation of exchange rates by…

Q: Given S(USD/AUD) = 0.7899, the price of a consumption basket in the US is$100 and the price of the…

A: The foreign exchange rate or for-ex is the rate of exchanging currency between different countries…

Q: The dollar-euro exchange rate is USD 1.25 = EUR 1, and the dollar-yen exchange rate is JPY 100 = USD…

A: Cross rate for Euro Yen  = USD/EUR * JPY/USD

Q: An exchange rate is the price of one country's currency expressed in another country's currency. The…

A: a) Indirect quote is where  the cost of one unit of local currency is given in units of foreign…

Q: If there is, what would be the profit of the mispricing?

A: Information Provided: Japanese yen exchange rate is ¥122 = $1 British pound exchange rate is £1 =…

Q: Assume that the indirect quote is for 115 Japanese yen per U.S.dollar and that the direct quote is…

A: Computation of Exchange rate of 1Euro is equal to how many yen: The exchange rate is given: 1US$=115…

Q: If the Canadian dollar to U.S. dollar exchange rate is 1.30 and the British pound to U.S. dollar…

A: 1 US dollar = 1.30 Canadian dollar 1 US dollar = 0.77 British pound We need to find Canadian dollar…

Q: An exchange rate is the price of one country's currency expressed in another country's currency. The…

A: The exchange rates are stated as “Direct Quotation”.Justification: A direct quotation is the…

Q: Foreign exchange and commodity prices. While traveling in the following countries, you occasionally…

A: Implied Direct Exchange Rates = =4.61/rate Indirect Exchange rate = rate/ 4.61

Q: he following spot FX rates were reported:   Japanese Yen British Pound Australian Dollar US Dollar…

A: Japanese Yen British Pound Australian Dollar US Dollar 0.010267 1.616500 0.957900 The…

Q: TIPS FOR READING AN EXCHANGE RATE CHART: Read down the chart. For example, in column 1 it says the…

A: Here discuss about the details of the currency exchange rate of different national and its…

Q: In the spot market, P1 = 100 USD, 1 USD = 0.95 Yen, and 1 Yen = 5.50 British Pound.  What is the…

A: Cross exchange rate method is used when there is no direct quotation of currencies. Thereafter, with…

Q: Today you notice the following exchange rate quotation: $1 = 3 Argentine pesos 1 Argentine pesos =…

A: The cross exchange rates can be used to determine the amount of in currency in terms of another.

Q: Suppose the exchange rate between the U.S. dollar and the Swedish krona was 9.0 krona = $1, and the…

A: Given, $1 = 9.0 krona Pound 1 = 1.40$

Q: If today 1 US Dollar can buy 3 Korean Won and 1 Korean Won can buy equals 2 Philippine Peso, what is…

A: Exchange rate (ER) is a value at which two or more currencies are exchanged or traded. To make the…

Q: In the spot market $1 = 5 Euro, 1 Euro = 25 Canadian Dollar, and 1 Canadian Dollar = 0.75 Japanese…

A: The exchange rate between the U.S. dollar and the Japanese yen = Euro / $ * Canadian Dollar/ Euro *…

Q: Based on the table below, which currencies appreciated between January and March? Name of Currency…

A: The appreciation of currency is linked to the strengthening of the local currency. In the given…

Q: 23) If the Canadian dollar to U.S. dollar exchange rate is 1.35 and the British pound to U.S. dollar…

A: The value of one country's currency in terms of another country's currency is known as the exchange…

Q: Suppose that the one-year interest rate is 2.1% in Canada and 4.4% in Germany. The current exchange…

A: Information Provided: Canada interest rate = 2.1% Germany interest rate = 4.4% Exchange rate (Spot…

Q: 5. On October 25 2015, one Euro traded for 1.106 US dollars, and thus one US dollar traded for 0.942…

A: The equilibrium graph shows the relation between the supply and demand of both the currencies.  The…

Q: Suppose that last year, the 12-month interest rates for the Australia and the Greece are 2.4% and…

A: The forward exchange rate is used to find out the exchange rate between two currencies in the future…

Instruments of Foreign Exchange Market

Foreign exchange is a worldwide market in which one nation’s currency is converted into another nation’s currency. In further terms, exchanging of nations currency with foreign currencies. Foreign exchange happens at a specified rate which is termed the foreign exchange rate. The exchange rates are not constant continuously changing as they are derived by market forces of supply and demand. Widely used foreign currencies are the United States- dollar, Euro, Japanese Yen, British pound, and Australian dollar. US- dollar is the most denominated foreign currency. The Euro to US dollar is a widely used currency pair in the forex market as these two currencies represent the world’s enormous economy. Forex trade is simple as exchanging currencies at the bank. The main players of forex markets are the central banks, financial institutions, intermediaries, investments banks, and other banks. Central Bank is the supreme player who decides the currency value of their own nation on the forex market. Mostly foreign exchange-traded at FX market (forex market) when tourists’ visits a foreign country, import, and export happens between two countries.