MBF-4E-04-03-Exchange_Rates_and_Applications

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4E

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Economics

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Jun 5, 2024

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Section 4.1: Ratios Section 4.2: Proportions and Pro-rations Section 4.3: Exchange Rates and Applications Section 4.4: Index Numbers and Applications Section 4.1 Topics Section 4.1: Ratios Section 4.2: Proportions and Pro-rations Section 4.3: Exchange Rates and Applications Section 4.4: Index Numbers and Applications
On this specific date, the exchange rate between the two currencies was: Exchange rates is the value of one currency measured against another currency. How many Canadian dollars would you receive for 1 American dollar on September 28 th , 2019? US$1.0000 = C$1.3241 Section 4.3 , 2019. Therefore, you will receive C$1.3241 for US$1 on September 28 th , 2019. Exchange Rates and Applications
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Section 4.3 C$1.3241 US$1 = The amount of C$ you receive is proportionate to the amount of US$ you give. Exchange Rates and Applications Exchange rates is the value of one currency measured against another currency. How many Canadian dollars would you receive for US$500 on September 28 th , 2019? US$ : C$ = US$ : C$
Section 4.3 = 1.3241 500 x x = C$662.05 You will receive C$662.05 for US$500. You will receive C$662.05 for US$500 . 1 : 1.3241 = 500 : x 1 Exchange Rates and Applications How many Canadian dollars would you receive for US$500 on September 28 st , 2019? US$ : C$ = US$ : C$ 1 x = × 500 1.3241 × Cross-multiply x = × 500 1.3241
Currency Cross-Rate Table, as of September 28 th , 2019 The vertical columns of the table represent one unit of the currency to be converted and the horizontal rows represent the equivalent value of it in another currency. Section 4.3 Currency Cross-Rate Table Currency exchange rates are generally displayed in a table called the currency cross-rate table for quick reference.
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Exchange Rates of Foreign Currencies per Canadian Dollar and Vice Versa Section 4.3 Currency Cross-Rate Table
If US$1 = C$1.3241, how many US dollars will you receive when you convert C$300? a. US$ 397.23 b. US$ 269.88 c. US$ 226.57 d. US$ 364.77 Section 4.3
a. C$1600 b. C$719.68 c. C$1059.28 d. 604.18 If US$1 = C$1.3241, how much will you receive if you convert US$800 to Canadian dollars? Section 4.3
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a. US$97.62 b. US$222.30 c. US$245.81 d. US$409.77 If US$1 = C$1.3241 and £1 = C$1.6274, calculate the amount of US dollars you will receive with £200. Section 4.3
The buy rate is the rate at which a financial institution buys foreign currency in exchange for local currency. The sell rate is the rate at which a financial institution sells foreign currency in exchange for local currency. Jessica wants to buy US$1000. Jessica wants to buy US$1000 . C$1 = US$0.7552 Current exchange rate as of September 28 th , 2020 US$1000 is worth = 1000 0.7552 C$1324.1525… = C$1324.15 . Buying and Selling Currencies Section 4.3
Buying and Selling Currencies Section 4.3 Commission is a fee that financial institutions charge a customer for exchanging one currency for another. That is, whether buying or selling currency, the customer always ends up with paying a commission. C$1 = US$0.7552 US$1000 = C$1324.15 Commission = C$1324.15 × 0.0075 = C$9.93 = C$1324.15 + C$9.93 = C$1334.08 Total Cost of Buying The bank charges a commission of 0.75% for the service.
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a. C$2500 b. C$3273.69 c. C$3310.38 d. C$3346.79 Section 4.3 Lukas approaches a local bank to purchase US$2500. If C$1 = US$0.7552, and the bank charges a commission of 1.1%, how much in Canadian dollars would Lukas have to pay for US$2500?
Section 4.3 A bank in Toronto buys British pounds at a rate of £1 = C$1.50. Calculate the commission rate, in percent form, that the bank charges if you want to sell £1000. Let the exchange rate be £1 = C$1.6274.
0.7552 0.7495 How many C$ would you get for US$1 ? C$ : US$ 1 : On March 1 st 2017, C$1 = US$0.7495 . On March 1 st 2019, C$1 = US$0.7552 . appreciated relative to US$. You were able to purchase more US$ with C$1 on March 1, 2019 than on March 1, 2017. The value of C$ appreciated relative to US$ . 1 : Currency Appreciation and Depreciation Section 4.3 Currency appreciation refers to an increase in the value of domestic currency in terms of foreign currency. 2017 2019
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How many € would you get for C$1 ? Currency Appreciation and Depreciation Section 4.3 Currency depreciation refers to a decrease in the value of domestic currency in terms of foreign currency. 0.6903 0.7095 C$ : € 1 : On March 1 st 2017, C$1 = €0.7095 . On March 1 st 2019, C$1 = €0.6903 . . You were able to purchase fewer € with C$1 on March 1, 2019 than on March 1, 2017. The value of C$ depreciated relative to € . 1 : 2017 2019
Section 4.3 Last year, a bookstore in Canada purchased textbooks from the UK for £20,000, when the exchange rate was C$1=£0.6085. This year, they make the same £20,000 purchase of textbooks, but the exchange rate is now C$1 = £0.6145. Calculate the increase or decrease of the cost.
+ HST (GST+PST) + HST (GST+PST) + Import Duty + Import Duty Importing Goods from Another Country Section 4.3 When you import an item, the authorities at the border will convert the value of the goods to the local currency based on current exchange rates and impose an import duty. Then HST (or GST+PST) are charged on the total value of the goods including duty. Price of goods in US$ Import duties vary depending on the product and/or the country of origin. Price of goods in C$
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Jason drove to Buffalo, USA to buy a winter coat. He paid US$500 (including taxes) for the coat that costs C$700 (including taxes) in Canada. In Canada, the customs authorities charged a duty of 18% for the jacket. He also paid 13% HST after the duty was applied. Calculate the total amount he spent on the jacket and if it was cheaper to buy the jacket in Buffalo? Assume C$1 = US$0.7495. a. C$889.52; no b. C$787.19; yes c. C$700; same price d. C$667.11; no Section 4.3

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