Chapter 6, Problem 1E

To determine

(a)

The price of 1 US dollar in terms of euro, given the exchange rate 1 euro = $1.41

Answer to Problem 1E

$1 = 0.71 euro

Explanation of Solution

1 euro = $1.41

So, $1 = $\frac{\text{1}}{\text{1}\text{.41 Euro}}$

$1 = 0.71 euro

Economics Concept Introduction

Exchange rate − The value of one currency in terms of another currency.

To determine

(b)

The price of 1 US dollar in terms of euro, given the exchange rate 1 Chines Yuan = $0.15

Answer to Problem 1E

$1 = 6.67 Chinese Yuan

Explanation of Solution

1 Chines Yuan = $0.15

So, $1 = $\frac{\text{1}}{\text{0}\text{.15 Chinese Yuan}}$

$1 = 6.67 Chinese Yuan

Economics Concept Introduction

Exchange rate − The value of one currency in terms of another currency.

To determine

(c)

The price of 1 US dollar in terms of euro, given the exchange rate 1 Israeli shekel = $0.28

Answer to Problem 1E

$1 = 3.57 Israeli shekel

Explanation of Solution

1 Israeli shekel = $0.28

So, $1 = $\frac{\text{1}}{\text{0}\text{.28 Israeli shekel}}$

$1 = 3.57 Israeli shekel

Economics Concept Introduction

Exchange rate − The value of one currency in terms of another currency.

To determine

(d)

The price of 1 US dollar in terms of euro, given the exchange rate 1 Kuwaiti dinar = $3.60

Answer to Problem 1E

$1 = 0.28 Kuwaiti dinar

Explanation of Solution

1 Kuwaiti dinar = $3.60

$1 = $\frac{\text{1}}{\text{3}\text{.60 Kuwaiti dinar}}$

$1 = 0.28 Kuwaiti dinar

Economics Concept Introduction

Exchange rate − The value of one currency in terms of another currency.