Suppose it is January 1980 and the $/DM exchange rate is DM1 = $0.36 and the...
- Suppose it is January 1980 and the $/DM exchange rate is DM1 = $0.36 and the DM/FF exchange rate is FF1 = DM0.39. What is the FF/$ exchange rate?
|
a. |
3.226 French Frank per dollar |
b. |
4.886 French Frank per dollar |
c. |
8.129 French Frank per dollar |
d. |
7.123 French Frank per dollar |
Homework Answers
The correct answer is option d i.e. 7.123 French Frank per dollar is the correct answer and is computed as shown below:
FF/$ = 1 / 0.36 x 1 / 0.39
= 7.123 Approximately
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