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Chapter 6: Problem 1

What is the price of 1 U.S. dollar in terms of each of the following currencies, given the following exchange rates? a. 1 curo \(=\$ 1.41\) b. 1 Chinese yuan \(=\$ .15\) c. 1 Israeli shekel \(=\$ .28\) d. 1 Kuwaiti dinar \(=\$ 3.60\)

Short Answer

Expert verified
a. Curo b. Chinese Yuan c. Israeli Shekel d. Kuwaiti Dinar

Step by step solution

01

a. 1 curo = $1.41

To find the price of 1 dollar in terms of curo, we need to take the reciprocal of the given exchange rate. \[1 \text{ curo} = \$1.41 \Rightarrow \frac{1}{1.41} \text{ curo} = \$1\] So, the price of 1 U.S. dollar is \(\frac{1}{1.41}\) curo.
02

b. 1 Chinese yuan = $.15

To find the price of 1 dollar in terms of Chinese yuan, we need to take the reciprocal of the given exchange rate. \[1 \text{ Chinese yuan} = \$0.15 \Rightarrow \frac{1}{0.15} \text{ Chinese yuan} = \$1\] So, the price of 1 U.S. dollar is \(\frac{1}{0.15}\) Chinese yuan.
03

c. 1 Israeli shekel = $.28

To find the price of 1 dollar in terms of Israeli shekel, we need to take the reciprocal of the given exchange rate. \[1 \text{ Israeli shekel} = \$0.28 \Rightarrow \frac{1}{0.28} \text{ Israeli shekel} = \$1\] So, the price of 1 U.S. dollar is \(\frac{1}{0.28}\) Israeli shekel.
04

d. 1 Kuwaiti dinar = $3.60

To find the price of 1 dollar in terms of Kuwaiti dinar, we need to take the reciprocal of the given exchange rate. \[1 \text{ Kuwaiti dinar} = \$3.60 \Rightarrow \frac{1}{3.60} \text{ Kuwaiti dinar} = \$1\] So, the price of 1 U.S. dollar is \(\frac{1}{3.60}\) Kuwaiti dinar.

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Most popular questions from this chapter

The U.S. dollar price of a Swedish krona changes from \(\$ .1572\) to \(\$ .1730\). a. Has the dollar depreciated or appreciated against the krona? b. Has the krona appreciated or depreciated against the dollar? Use the information in the following table on Mexico's 2007 international transactions to answer exercises 4-6 (the amounts are the U.S. dollar values in millions): \begin{tabular}{lr} \hline Merchandise exports & \(\$ 271,594\) \\ Merchandise imports & \(\$ 281,649\) \\ Services exports & \(\$ 17,512\) \\ Services imports & \(\$ 23,784\) \\ Income receipts & \(\$ 7,972\) \\ Income payments & \(\$ 26,036\) \\ Unilateral transfers & \(\$ 24,197\) \\ \hline \end{tabular}

Many residents of the United States send money to relatives living in other countries. For instance, a Salvadoran farmworker who is temporarily working in San Diego, California, sends money back to his family in El Salvador. How are such transactions recorded in the balance of payments? Are they debits or credits?

Suppose the U.S. dollar price of a British pound is \(\$ 1.50\); the dollar price of a curo is \(\$ 1\); a hotel room in London, England, costs 120 British pounds; and a comparable hotel room in Hanover, Germany, costs 200 curo. a. Which hotel room is cheaper for a U.S. tourist? b. What is the exchange rate between the euro and the British pound?

Suppose the U.S. dollar price of the Canadian dollar is \(\$ .75\). How many Canadian dollars will it take to buy a set of dishes selling for \(\$ 60\) in Detroit, Michigan?

Why is it true that if the dollar depreciates against the yen, the yen must appreciate against the dollar?
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