Question

tomorrow the delar, how many Quantitative Problem 1. Suppose that I Swedish krone could be purchased in the foreign exchange market today for $0.13. If the krone appreciated kronas would a dollar buy tomorrow? Do not round intermediate calculations. Round your answer to two decal places. kronas Show All Feedback Quantitative Problem 2: Suppose the exchange rate between the U.S. dollar and the South African rand was 15 rand - $1 and the exchange rate between the US dollar and the rol shekel was shekel - $0.24. What was the exchange rate between the South Mrican rand and the Israeli Shekel? Do not found intermediate calculations. Round your answer to decimal places. Brands per shekel Show All Feedback

Answer 1

Answer 1:

7.12 Kronas

Working:

Current rate:

1 Kronas = $0.13

Krona appreciated by 8%.

Amount of Kronas one US dollar would by = 1 / (0.13 * (1+8%)) = 7.12 Kronas

Answer 2:

3.60 rands per shekel

Working:

15 rands = $1

1 Shekel = $0.24

Hence:

1 shekel = 15 * 0.24 = 3.60 rands