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a)  Explain to Mrs. Kaleji the differences of the quotations given above       and the differences between BID and ASK prices in exchange rate                                                                                                                     b)  How much Zambian kwacha is Mrs Kaleji expecting to be given by the bank if she sells US$ 2,000  and   How much South African is Mrs Kaleji expecting if she sold US$ 2,000 to the bank                                                                                                                           c)  Explain the functions of the exchange rate in international trade

a)  Explain to Mrs. Kaleji the differences of the quotations given above       and the differences between BID and ASK prices in exchange rate                                                                                                                     b)  How much Zambian kwacha is Mrs Kaleji expecting to be given by the bank if she sells US$ 2,000  and   How much South African is Mrs Kaleji expecting if she sold US$ 2,000 to the bank                                                                                                                           c)  Explain the functions of the exchange rate in international trade

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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a)  Explain to Mrs. Kaleji the differences of the quotations given above       and the differences between BID and ASK prices in exchange rate                                                                                                                    

b)  How much Zambian kwacha is Mrs Kaleji expecting to be given by the bank if she sells US$ 2,000  and   How much South African is Mrs Kaleji expecting if she sold US$ 2,000 to the bank                                                                                                                          

c)  Explain the functions of the exchange rate in international trade    

Mrs Ireen Ndhlovu kaleji has US$ 2,000 which she is planning to exchange with Zambian Kwacha. She inc from the bank and is given the following information: Ask price 1 USD 1 ZWM Bid price K10 К9.5 ко 806 KO.79 The other information showed the following: Ask price Bid price 1 ZMW US$ 0.10 US$ 0.105 1 ZMW ZAR 1.241 ZAR 1.268
Transcribed Image Text:Mrs Ireen Ndhlovu kaleji has US$ 2,000 which she is planning to exchange with Zambian Kwacha. She inc from the bank and is given the following information: Ask price 1 USD 1 ZWM Bid price K10 К9.5 ко 806 KO.79 The other information showed the following: Ask price Bid price 1 ZMW US$ 0.10 US$ 0.105 1 ZMW ZAR 1.241 ZAR 1.268
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