Chapter 17, Problem 1DQ

DISCUSSION QUESTIONS

Recreate Table 17.1 for the following currencies: Australian dollar, British pound, Canadian dollar, Chinese yuan, Euro, Japanese yen, and Swiss franc. Be sure to show both the direct quotations and indirect quotations.

TABLE 17.1 Sample Exchange Rates: Friday, May 29, 2015

	Direct Quotation: U.S. Dollars Required to Buy One Unit of Foreign Currency (1)	Indirect Quotation: Number of Units of Foreign Currency per U.S. Dollar (2)
Australian dollar	$0.7644	1.3082
Brazilian real	0.3145	3.1793
British pound	1.5290	0.6540
Canadian dollar	0.8030	1.2454
Chinese yuan	0.1613	6.2004
Danish krone	0.1473	6.788
EMU euro	1.0993	0.9097
Hungarian forint	0.00355404	281.37
Israeli shekel	0.2586	3.8673
Japanese yen	0.00806	124.14
Mexican peso	0.0650	15.3776
South African rand	0.0823	12.1557
Swedish krona	0.1174	8.5195
Swiss franc	1.0636	0.9402
Venezuelan bolivar fuerte	0.1587289	6.3001

Nate: Column 2 equals 1.0 divided by column 1. However, rounding differences do occur. Source: Adapted from The Wall Street Journal (online.wsj.com). June 1, 2015.