The following quotes are provided by a Foreign Exchange (FX) dealer at the airport. BUY SELL YEN (Japan) 71 70 a) If you are exchanging 30 000 AUD (Australian Dollars), how many Japanese YEN will you receive?
The following quotes are provided by a Foreign Exchange (FX) dealer at the airport. BUY SELL YEN (Japan) 71 70 a) If you are exchanging 30 000 AUD (Australian Dollars), how many Japanese YEN will you receive?
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
Problem 1PS
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Question
The COVID-19 pandemic is over, and you decide to celebrate by going on a vacation to Japan.
The following quotes are provided by a Foreign Exchange (FX) dealer at the airport.
|
|
BUY |
SELL |
|
YEN (Japan) |
71 |
70 |
a) If you are exchanging 30 000 AUD (Australian Dollars), how many Japanese YEN will you receive?
Show workings and a concluding statement in your response.
Expert Solution
Step 1 Given Information
1 AUD=70/71 YEN
Japanese yen to buy with 30000 AUD
Since we are selling AUD to buy YEN, we will be applying selling rate for AUD and buying rate for YEN.
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