Question

1. If euros sell for $ 1.50 ( U.S.) per euro, what should dollars sell for in euros per dollar?

2. Suppose that the exchange rate is 0.60 dollars per Swiss franc. If the franc appreciates 10% against the dollar, how many francs would a dollar buy tomorrow?

Answer 1

1)
	EURO	US DOLLAR
	1	1.5
	US DOLLAR	EURO
	1.5	1
	1 USD = ((1/1.5)*1)
	1 USD = .67 EUROS.
2)	SWISS FRANC	US DOLLAR
	1	0.6
	US DOLLAR	SWISS FRANC
	0.6	1
	The number of swiss francs a dollar can buy	((1/.6)*1)
	The number of swiss francs a dollar can buy	1.6667
	The swiss franc appreciates 10% against the dollar,
	so now 1 swiss franc can buy you 10% more in terms
	of the dollar.
	SWISS FRANC	US DOLLAR
	1	0.6*(1+.10)
	1	0.66
	US DOLLAR	SWISS FRANC
	0.66	1
	The number of swiss francs a dollar can buy	((1/.66)*1)
	The number of swiss francs a dollar can buy	1.5152
	The dollar would buy 1.52 swiss francs tomorrow.