ECON 231 Lecture : Homework 6 2010 Homework Problem Solutions
16 Oct 2011
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In each case, how would you do it and how much would you benefit: 1 = 2 swiss francs; . 50 = 1; = 0. 75 swiss francs. 1. 78/1: 200 = . 00; 1 ringgit = sh. 15; 20 ringgit = 1. 600/1: 1 = 1. 5 euro; 3 swiss francs = 2 euros; 2. 25 swiss francs = 1. No gain: 100 = . 00; 1 ringgit = sh. 15; 20 ringgit = 1. 300/1: suppose the exchange rate between the u. s. dollar and the canadian dollar is 1. 37 (c$/us$), while the exchange rate between the u. s. dollar and the british pound is 0. 66 (/us$). 1. 5 cad / 1 euro: the table below reports the movements of prices and exchange rates for canada and indonesia over a year"s time. Comment on the movements of the indonesian rupiah in real and nominal terms. At first the exchange rate is 2435/1 => 14500/1 nominal; depreciated factor of 5. 95 (14500/2435)
