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Chapter 29: Problem 1

If the exchange rate between the Japanese yen and the U.S. dollar expressed in terms of yen per dollar is \(\$ 115=\$ 1\), what is the exchange rate when expressed in terms of dollars per yen?

Short Answer

Expert verified
The exchange rate when expressed in terms of dollars per yen is approximately \( \frac{1}{115} \) dollars per yen or approximately 0.0087 dollars per yen.

Step by step solution

01

Understand the Given Exchange Rate

The provided exchange rate is 115 yen for 1 U.S. dollar. This is represented in terms of yen per dollar.
02

Conversion to dollars per yen

To express the exchange rate in terms of dollars per yen, the reciprocal of the given rate is taken. The reciprocal of a number is found by dividing 1 by the number.
03

Calculation

Finding the reciprocal of the given rate, which is \( 115 \) yen per dollar, results in approximately \( \frac{1}{115} \) dollars per yen, expressed as a decimal.

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Most popular questions from this chapter

On January \(1,2002,\) there were 15 member countries in the European Union. Twelve of those countries eliminated their own individual currencies and began using a new common currency, the euro. For a three-year period from January \(1,1999,\) through December \(31,2001,\) these 12 countries priced goods and services in terms of both their own currencies and the euro. During that period, the values of their currencies were fixed against each other and against the euro. So during that time, the dollar had an exchange rate against each of these currencies and against the euro. The following table shows the fixed exchange rates of four European currencies against the euro and their exchange rates against the U.S. dollar on March 2,2001 . Use the information in the following table to calculate the exchange rate between the dollar and the euro (in euros per dollar) on March 2 , \(2001 .\) $$ \begin{array}{l|r|r} \hline \text { Currency } & \begin{array}{c} \text { Units per } \\ \text { Euro (fixed) } \end{array} & \begin{array}{c} \text { Units per U.S. Dollar } \\ \text { (as of March 2, 2001) } \end{array} \\ \hline \text { German mark } & 1.9558 & 2.0938 \\ \hline \text { French franc } & 6.5596 & 7.0223 \\ \hline \text { Italian lira } & 1,936.2700 & 2,072.8700 \\ \hline \text { Portuguese escudo } & 200.4820 & 214.6300 \\ \hline \end{array} $$

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