Question

Today's Exchange Rates for the Bhutanese Ngultrum Closing Today's Today's Change on Point High Low Day Sterling 70.72 71.06 68.70 +0.42 US Dollar 43.52 45.16 43.52 -0.80 Euro 46.61 48.57 44.93 +1.68 Yen 0.40 0.43 0.38 -0.03 * Rates are number of Ngultrum per stated currency World Bank Index 68.00 43.14 44.28 0.38 41. If the exchange rates for Sterling and Euro continue to increase every day by the same amount of Ngultrums as today, in how many more days would a Euro buy more Ngultrums than one pound Sterling? A. 10 B. 20 C. 30 D. 40 E. 50 42. If the Closing Point/World Bank Index ratio is constant, what would the World Bank Index have been for Sterling yesterday? A. 67.60 B. 68.10 C. 68.60 D. 69.10 E. Cannot say 43. Using the World Bank Index, how many US Dollars would buy the same amount of Ngultrums as 1,078,500 Yen? A. 5,900 B. 15,900 C. 59,000 D. 95,000 E. None of these

Answer 1

Question. 42 Given that the ratio of closing point to world Bank Index is constant for every day ie closing point constant for two World Bank Index ice today's raho will be equal to yesterday's ratio Hence, Today's closing Point Yesterday's closing point Today's world Bank Index Yesterday's world Bank Inder 70.72 70.72 – 0.42 Yesterday's World Bank Index 70.3 - = 1.04 Yesterday's world Bank Indet 70.3 - Yesterday's World Bank Index = 1.04 - 67.59 - 67.60 ... Option A is correct

Question. 41. in that Exchange Rates will increase every day by the same amount of increased as of today l.e. next day sterling Rate = closing point + 0.42 As we dont know exactly in how many days the Exchange Rate of Euro will cross the sterlling we need to solve this problem by trail & Error Method : Option A e After 10 days Exchange Rates will be Sterlling = 70.72 + 0.42 x 10 = 74.92 Euro = 46.61 + 1.68 x 10 = 63.41 Since Euro is less than Sterlling it can't buy more Ngultrums than a Sterlling optio B e After 20 days Exchange Rates will be Isterlling = 70.72 + 0.42x20 = 79.12 i euro = 46.61 + 1.68 × 20 = 80.21 Here Euro Exchang rate crosses the sterlling, hence It can buy more Ngultrums than a sterlling. option B is correct since in a period of 20 days Eur can buy more Ngultrums than Sterlling other ophony were fyreleveut.

Question. 43 Given that Aao many us Dollars will be Required to buy the 4078,500 yen in. Exchange of Bhutanese. Since the Direct acote between the Dollar and ren are not available, we can use the cross currency exchange rałej to buy the same No. of US Dollar roured = 10,78,500 Yen z umpy oly yen - 10,74, soyex 03&N pa bodo = 1048500 0-38 Dollar - 9500 Dollay option & & Correct