If the nominal exchange rate is 12 Mexican pesos per $1
12 mexian pesos = 1 Dollar
1 mexian pesos = 1/12 Dollar
36 mexian pesos = 36 * 1/12 Dollar = 3 dollar
Last option is correct answer
If the nominal exchange rate is 12 Mexican pesos per $1 Question 9 (1 point) If...
a. Gold Is $350 per ounce In the United States and 2.800 pesos per ounce In Mexico. The nominal exchange rate between U.S. dollar and Mexican pesos that is Implled by the PPP theory Is: pesos. b. Mexico experiences Inflation so that the price of gold rises to 4,200 pesos per ounce, whlle the price of gold remalns $350 per ounce In the United States. The nominal exchange rate between U.S. dollars and Mexican pesos that is Implied by the...
9. Suppose nominal exchange rates are 110 Japanese yen per dollar, 0.9 euro per dollar, and 16 Mexican pesos per dollar. A pizza costs 1,600 yen in Tokyo, Japan, 12 euro in Munich, Germany, 180 pesos in Mexico City and 12 dollars in Raleigh, North Carolina. Which of the following statements is (are) correct? (x) Pizza is more expensive in Tokyo than Mexico City but less expensive than in Munich. (y) Pizza is less expensive in Raleigh than Munich but...
Exchange Rates The chart below shows the exchange rate between the U.S. dollar and the Mexican peso in 2015 and 2016. In these questions we’ll focus on changes in 2015. Note that the chart shows the exchange rate in terms of pesos per dollar. Suppose a meal at a restaurant in Mexico City cost 90 pesos in 2015. Read approximate figures from the chart for the exchange rate in January 2015 and January 2016, and use those figures to answer the following...
In Mexico, avocados are 39 pesos per kilogram and the exchange rate is 9.7 pesos to the US dollar. What is the cost in dollars of an avocado that weighs 0.25 lb?
Question 10 (1 point) Saved The Spot Rate (SO) for Mexican Pesos (MXP) for US dollars (USD) is MXP 20.3 to USD 1. The riskless rate of interest in the US for 3 months (RUS) is 0.25%. The riskness rate in Mexico (Foreign Country) is 1.6%. According to the Covered Interest Rate Parity relationship, what should be the 3- month Forward rate (F) of MXP for USD? (Note: Your answer should be the number of MXP for USD 1 in...
Question Assume the exchange rate for the Mexican Peso is falling relative to the U.S. dollar. An American 17 Not yet answered Select one: Marked out of 1a. Credit purchases from Mexican companies at prices stated in Mexican Pesos. Flag question O b.Credit purchases from Mexican companies at prices stated in U.S. dollars. company will incur losses from this falling exchange rate if the company is making: C. Credit sales to Mexican companies at prices stated in U.S. dollars. O...
Consider the market for Canadian dollars. If the exchange rate rises from 2 Mexican pesos per dollar to 4 Mexican pesos per dollar, A. the supply of Canadian dollars increases. B. the demand for Canadian dollars increases. OC.a movement up along the demand curve for Canadian dollars occurs. OD. the demand for Canadian dollars decreases.
Given these two exchange rates, $1 = 12.349 Mexican pesos and $1-€0.7684, compute the cross- rate between the Mexican peso and the euro. State this exchange rate in pesos and in euros. (Do not round intermediate calculations. Round your answers to 4 decimal places.) Cross rate of 1 peso Cross rate of 1 euro pesos
Given these two exchange rates, $1 = 12.268 Mexican pesos and $1 = €0.7624, compute the cross-rate between the Mexican peso and the euro. State this exchange rate in pesos and in euros. (Do not round intermediate calculations. Round your answers to 4 decimal places.) Cross-rate of 1 peso Cross-rate of 1 euro pesos
The Mexican peso spot exchange rate is 12.75 peso per dollar. The nominal annual interest rate in Mexico is 6% and the nominal annual interest in the US is 1%. What is the approximate 5-year forward premium/discount of the peso? A. 27.3% premium B. 27.3% discount C. 21.5% premium D. 21.5% discount E. 5.0% premium