Macroeconomics (MindTap Course List)
10th Edition
ISBN: 9781285859477
Author: William Boyes, Michael Melvin
Publisher: Cengage Learning
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Question
Chapter 21, Problem 1E
To determine
To find:
The exchange rate between the U.S. and Canadian dollars
Expert Solution & Answer
Explanation of Solution
Under gold standards, every country have a fixed value in terms of gold. Such method helps to maintain fixed exchange rates between countries.
Under the gold standard, if the
USD per CD
Economics Concept Introduction
Gold standard exchange rate system:
Gold standard exchange rate system is a system in which a country's currency has a value directly linked with gold.
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Students have asked these similar questions
Find the following cross rates.
a) Chinese Yuan/Japanise Yen (i.e. how many Chinese Yuan are needed to buy 1 Janapise Yen?)
b) UK Pound/Mexican Peso (i.e. how many Pounds are needed to buy 1 Peso?)
In France, one kilogram of macadamia nuts costs 10.5Euro and 10 Dollars in Canadian in Canada. According to the law of one price, the expected exchange rate between the Euro and the Canadian would be_____
1.5Euro/$
0.12Dollar/Euro
1.67 Dollar/Euro
0.67 Euro/Dollar
IN US$
PER US$
FRI
THURS
FRI
THURS
Americas
Argentina
0.0172
0.0172 58.278 58.2427
peso
Brazil real
0.2431
0.2401
4.1127
4.1655
Canada dollar
0.7619
0.7612
1.3126
1.3138
Chile peso
0.001407 0.001404
710.7
712
The above table shows U.S.-dollar foreign-exchange rates in New York trading
(Oct. 19, 2019). Source: Wall Street Journal. Which currency depreciated from
Thursday to Friday? Which currency appreciated?
Chapter 21 Solutions
Macroeconomics (MindTap Course List)
Knowledge Booster
Similar questions
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- Consider the following table of average monthly exchange rates. March 2020 Japanese yen ¥ Euro € Pound sterling £ HK dollar HK$ Thai baht B PHP per unit of foreign currency 0.4731 56.3194 63.0322 6.5552 1.5889 USD per unit of foreign currency 0.0093 1.1064 1.2384 0.1288 0.0312 March 2021 PHP per unit of foreign currency 0.4476 57.8798 67.363 6.2563 1.5812 USD per unit of foreign currency 0.0092 1.1916 1.3868 0.1288 0.0325 A. How many units of Japanese yen do you need to buy P1 in March 2020 and in March 2021? B. How many units of Japanese yen do you need to buy $1 in March 2020 and in March 2021? C. The Philippine peso depreciated against which currencies between March 2020 and March 2021? D. The US dollar appreciated against which currencies between March 2020 and March 2021?arrow_forwardPlease don't send hand written answer.thak yoyarrow_forwardCurrency Values in 2015 and 2016 Canada (dollar) (peso) (yuan) (yen) Country Currency Percentage 2015 2016 0.82710.6892 0.0683 0.0538 0.1608 0.1522 |0.0080 0.0086| 36% Мexico 28% China 20% Japan 16% Based on the exchange rate table, which statement is correct? A. The Chinese yuan appreciated in value between 2015 and 2016. B. The Canadian dollar depreciated in value between 2015 and 2016. C. The Japanese yen depreciated in value between 2015 and 2016. D. The Mexican peso appreciated in value between 2015 and 2016.arrow_forward
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