Use the information below to answer the questions that follow. U.S. $ EQUIVALENT CURRENCY PER U.S. $ Poland zloty 0.2686 3.723 Jordan dinar 1.4104 0.709 Bahrain dinar 2.6525 0.377 New Zealand dollar 0.6414 1.5591 Australia dollar 0.7002 1.4282 If you have $4, how many Poland zlotys can you get? How much is one Poland zloty worth? If you have 4 million Poland zlotys, how many dollars do you have? How many Jordan dinars can you get for a Poland zloty? What is the rate of the most valuable currency listed? What is the rate of the least valuable currency listed?

Q: A television costs $755 in the United States. The same television costs 634.5 euros. If purchasing…

A: Purchasing power parity: Purchasing power parity (PPP) is a concept which means that exchange rates…

Q: TIPS FOR READING AN EXCHANGE RATE CHART: Read down the chart. For example, in column 1 it says the…

A: Depreciation of a currency means that the value of the currency with respect to the other decreases,…

Q: An Australian firm asks the bank for an AS/SFr quote because it received SFr and wants to change it…

A: Calculate the ask rate of US$/SFR by dividing 1 by the bid rate of SFR/US$ which is 1.4950. Thus,…

Q: ompute the amount of each foreign currency that can be purchased for $610,000: 1 Danish krone =…

A: Order to calculate how much one foreign currency can be purchase with other currency is considered…

Q: If euros sell for $1.71 (U.S.) per euro, what should dollars sell for in euros per dollar? Round…

A: Forex refers to foreign exchange. Each country has its own currency. When two countries trade with…

Q: The most recent currency exchange rate between the British Pound (GBP) and the US Dollar (US) is…

A: The question is based on the concept of Foreign Exchange Management.The forex market enables…

Q: you just returned from a trip to germany and have 277 euros in your pocket. How many dollars will…

A: GIVEN, EURO = 277 the U.S. dollar equivalent of the euro = 0.89

Q: While on vacation in Europe, you decide to visit Britain. You estimate that you need 200 pounds for…

A: First convert Pounds to dollars=200*1.5867=317.34 dollars

Q: If one British pound can purchase $1.85 U.S. dollars, how many British pounds can one U.S. dollar…

A: Excel spread sheet for calculation of British pounds:

Q: Use this table to answer the next two questions. The following table shows the number of euros…

A:

Q: Helene Yes! In fact we have that available. Calculate company profit using the alternate exchange…

A: Variables in the question:Revenue (in Euros)=294000Net income (in Euros)=196000EUR:USD=1.31 (i.e.,…

Q: Assume poland's currency (the zloty) is worth $0.17 and the Newzealand dollar (NZ$) is worth $0.005.…

A: Cross rate is the rate at which one currency is exchanged with another currency. Cross rate defines…

Q: Use the following information on the U.S. dollar value of the pound sterling to answer Forward Rate…

A: b.  No effect

Q: You live in Australia and want to try to make some money through interest rate arbitrage abroad. You…

A: Arbitrage is the risk less profit that can by earned by buying and selling in two markets and taking…

Q: TIPS FOR READING AN EXCHANGE RATE CHART: Read down the chart. For example, in column 1 it says the…

A: The foreign exchange rates: The foreign exchange rates refer to the trading of one currency for…

Q: If one Czech crown is equal to $0.05 U.S. dollar, the U.S. dollar is equal to how many Czech crowns?…

A: Foreign exchange It is a conversion of 1 country's currency into the other country's currency.

Q: A computer costs $660 in the United States. The same model costs €515 in France. If purchasing power…

A: The purchasing power parity is used to measure the absolute purchasing power of different currencies…

Q: If euros sell for $1.63 (U.S.) per euro, what should dollars sell for in euros per dollar? Round…

A: The question is related to calculation of euro per dollar Euro per dollar = 1 ÷ dollar per euro

Q: Suppose a bank provides the following quotes: Bid 1.2567 CAD per U.S. Dollar and Ask 1.2682 CAD per…

A: In the exchange rate market, the bid price refers to the price that the broker is willing to pay for…

Q: Purchasing Power Parity A computer costs $430 in the United States. The same model costs €525 in…

A: The objective of the question is to calculate the spot exchange rate between the euro and the dollar…

Q: Suppose that the spot exchange rates against the US dollar are: SEK9.3924 = USD1 CHF1.5231 = USD1…

A: Following exchange rates are given SEK 9.3924 = USD 1 CHF 1.5231 = USD 1 JPY 123.380 = USD 1…

Q: A computer costs $600 in the United States. The same model costs €555 in France. If purchasing power…

A: Our goal here is to ascertain the spot exchange rate between the euro and the dollar, maintaining…

Q: A television costs $710 in the United States. The same television costs 628.5 euros. If purchasing…

A: The exchange rate at which currencies of two countries are exchanged immediately by the individual…

Q: Aa An exchange rate is the price of one country's currency expressed in another country's currency.…

A: Exchage rate: The value of the currency of one country in the terms of the current of another…

Q: Consider the following table, which reports the spot exchange rate between the dollar and the pound,…

A: Spot exchange rate ($/£)1.1122r US %r UK %1 month2.10%2.10%3 month2.90%2.50%6 month4%2.90%1…

Q: You often travel to Australia and you need to exchange Australian dollars. Your bank provides the…

A: A rate through which individuals or companies convert their domestic currency with the other…

Q: Use the information below to answer the following questions.     U.S. $ EQUIVALENT CURRENCY PER U.S.…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: If British pounds sell for $1.43 (U.S.) per pound, what should dollars sell for in pounds per…

A: Given, 1 British Pound =$1.43

Q: 1. Based on the following information, answer the problems showing procedure for each problem.…

A: In the foreign exchange market, a currency forward is a legally binding contract that locks in the…

Q: What is $246.20 Canadian Dollars in U.S. Dollars? ($1 Canadian Dollar = $0.76 U.S. Dollar)

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A: A rate through which individuals or companies convert their domestic currency with the other…

Instruments of Foreign Exchange Market

Foreign exchange is a worldwide market in which one nation’s currency is converted into another nation’s currency. In further terms, exchanging of nations currency with foreign currencies. Foreign exchange happens at a specified rate which is termed the foreign exchange rate. The exchange rates are not constant continuously changing as they are derived by market forces of supply and demand. Widely used foreign currencies are the United States- dollar, Euro, Japanese Yen, British pound, and Australian dollar. US- dollar is the most denominated foreign currency. The Euro to US dollar is a widely used currency pair in the forex market as these two currencies represent the world’s enormous economy. Forex trade is simple as exchanging currencies at the bank. The main players of forex markets are the central banks, financial institutions, intermediaries, investments banks, and other banks. Central Bank is the supreme player who decides the currency value of their own nation on the forex market. Mostly foreign exchange-traded at FX market (forex market) when tourists’ visits a foreign country, import, and export happens between two countries.