ZuoTi.Pro
Question

against the US$. Based on the following exchange rate info, the Euro has Year 1 Year 2 Euros (€) per US$ 0.8540 0.8540 Sing $
versus the euro. Based on the following exchange rate info, the US$ has Year 1 Year 2 Euros (€) per US$ 0.8540 0.8450 Sing $
Based on the following exchange rate info, the Sing$ has ____ against the real. Year 1 Year 2 Euros (€) per US$ 0.8540 0.8450
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

1) The euro has remainind the same against the U.S $

Year 1 & 2 exchange rate is 0.8540 remained same.

2) The U.S $ has grown weaker versus the euro.

Year 1 exchange rate is 0.8540

Year 2 exchange rate is 0.8450

we are getting lesser euro's for 1 US $ means US $ became weaker.

3) the Sign$ has remained the same against the real.

Year 1 exchange rate is 0.6530

Year 2 exchange rate is 0.6530.

Year 1 & 2 exchange rate is 0.6530 remained same

1 0
Add a comment
Know the answer?
Add Answer to:
against the US$. Based on the following exchange rate info, the Euro has Year 1 Year...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • The spot rate of euro against US$ is $1.4250/€. The rate of inflation in the U.S....

    The spot rate of euro against US$ is $1.4250/€. The rate of inflation in the U.S. and Euro area are expected to be 3% and 2.5% respectively. Based on the theory of Relative PPP, the expected spot exchange rate of euro against the US$ for next year is ____________.

  • Suppose the spot rate and the 1-year forward rates for the euro are €0.88/$ and €0.95/$...

    Suppose the spot rate and the 1-year forward rates for the euro are €0.88/$ and €0.95/$ (i.e. 0.95 euros per dollar). (2 points) Is the euro expected to get stronger or weaker? Why? (3 points) What would you estimate is the difference between inflation rates in the US and Europe (i.e., inflation(US) – inflation(Europe))?

  • The exchange rate between the US dollar and the Euro is $1 = .9 Euro. If...

    The exchange rate between the US dollar and the Euro is $1 = .9 Euro. If Italian shoes costs $100 in the U.S. and 92 Euros in Italy, does purchasing power parity hold in this case? If the exchange rate instead were $1 = .89 Euro, is the rate closer to that where parity holds or further away?

  • 1. The present exchange rate between US dollars and Euros is 1.34 $/Euro. The price of...

    1. The present exchange rate between US dollars and Euros is 1.34 $/Euro. The price of a domestic 180-day Treasury bill is S99.50 per $100 face value. The price of the analogous Buro instrument is 98.50 Euros per 100 Euro face value (a) What is the theoretical 180-day forward exchange rate? (b) Suppose the 180-day forward exchange rate available in the marketplace is 1.31 $/Euro. This is less than the theoretical forward exchange rate, so an arbitrage is possible. Describe...

  • The present exchange rate between US dollars and Euros is 1.34 $/Euro. The price of a...

    The present exchange rate between US dollars and Euros is 1.34 $/Euro. The price of a domestic 180-day Treasury bill is $99.50 per $100 face value. The price of the analogous Euro instrument is 98.50 Euros per 100 Euro face value. a. What is the theoretical 180-day forward exchange rate? b.Suppose the 180-day forward exchange rate available in the marketplace is 1.31 $/Euro. This is less than the theoretical forward exchange rate, so an arbitrage is possible. Describe a risk-free...

  • Suppose we have the following exchange rate quotes:    in US$ per US$ Euro area (€)...

    Suppose we have the following exchange rate quotes:    in US$ per US$ Euro area (€) 1.3455 .7432 Mexico (Ps) .0781 12.8113    a. If you have $225, you can get  euros. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Use the €/$ exchange rate in your calculation.)    b. One euro is worth $  . (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)    c. If you...

  • Suppose we have the following exchange rate quotes:    in US$ per US$ Euro area (€)...

    Suppose we have the following exchange rate quotes:    in US$ per US$ Euro area (€) 1.3637 .7333 Mexico (Ps) .0781 12.8025    a. If you have $150, you can get  euros. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Use the €/$ exchange rate in your calculation.)    b. One euro is worth $  . (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)    c. If you...

  • Given that the spot rate is 1.5 euros per pound and the forward euro-pound exchange rate...

    Given that the spot rate is 1.5 euros per pound and the forward euro-pound exchange rate is 1.575 euros per pound calculate the forward premium discDunt on the British pound and indicate which of the two it is. Consider a Dutch investor with 1 000 euros to pace in a bank deposit in either the Netherlands or Great Britain. The one-year interest rate on bank deposits is 2% in Britain and 4.04% in the Netherlands. The one year forward euro-pound...

  • Suppose the one-year forward $1€ exchange rate is $1.7 per euro and the spot exchange rate...

    Suppose the one-year forward $1€ exchange rate is $1.7 per euro and the spot exchange rate is $1.8 per euro. What is the forward premium on euros (the forward discount on dollars)? The forward premium on euros is percent. (Give your answer as a percentage with one decimal and do not forget a negative sign, if appropriate.)

  • 5. Changes in the foreign-exchange market The following questions focus on the exchange rate between the euro and the D...

    5. Changes in the foreign-exchange market The following questions focus on the exchange rate between the euro and the Danish krone. Assume the exchange rate is flexible. The exchange rate is defined as the number of euros you must pay for one krone. Suppose an economic downturn in Denmark causes Danish incomes to decrease, while European incomes remain unchanged Shift the appropriate curve or c on the following graph to illustrate how this affects the market for Danish kroner if...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT