ECON 261 Lecture Notes - Lecture 5: Foreign Exchange Market
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Assignment worksheet: for (cid:455)our (cid:272)hose(cid:374) (cid:272)ou(cid:374)tr(cid:455) ide(cid:374)tif(cid:455) its (cid:272)urre(cid:374)(cid:272)(cid:455)(cid:859)s (cid:374)a(cid:373)e a(cid:374)d tradi(cid:374)g s(cid:455)(cid:373)(cid:271)ol (cid:271)elo(cid:449): * three letter trading symbols can be found at http://www. oanda. com/convert/classic. Research the exchange rate over the past 12 months between the u. s. dollar and the currency you have chosen above and complete the tables below. 1. Rate in american terms, i. e. , usd per one unit of foreign currency2. European terms, i. e. , unit of foreign currency per one usd2. In completing the table below express your answers in either american or european terms: 2 the exchange rate for the euro in american terms is expressed as the number of u. s. dollars it takes to buy one euro. It is the inverse of the exchange rate expressed in european terms. The exchange rate for the euro in european terms is expressed as the number of euros it takes to buy one u. s. dollar. It is the inverse of the exchange rate expressed in american terms.
