Question

If you were going to Europe, would you want the U.S. dollar to be strong or weak? Interpret the current exchange rate between the U.S. and the Euro (so if an item costs 10 Euros, how much does it cost in U.S. Dollars?)

Answer 1

If I were going to USA , I would want the dollar to be weak as I would more dollars for the currency exchanged

eg: $1 = Rs 60 so rs1 = 0.017 so if you exchange Rs 1000 you would get Rs17

if $1 =Rs 70 , rs 1 would give you rs 0.014 so if you exchange Rs 1000 you would get Rs14

if $1 = Rs 50 , rs 1 would give you 0.02 so if you exchange Rs 1000 you would get Rs20

so weaker the dollar more one would get in terms of $ when exchanged with the national currency .

currency exchange rate 1euro= $1.12

so 10 euros = 10*1.12= $11.12

so an item which costs 10 euros in Europe would cost $11.12 in USA