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Chapter 18: Q. 1 (page 497)

International travelers and business people frequently need to accurately convert from one currency to another. It is often easy to find the rate needed to convert the U.S. dollar into another currency. It can be more difficult to find exchange rates between two non U.S. currencies. Go to http://www.oanda.com/convert/ classic. This site lets you convert from any currency into any other currency. How many Lithuanian litas can you currently buy with one Chilean peso?

Short Answer

Expert verified

1 Chilean monetary unit is capable 0.00462344 Lithuanian Litas, similarly, 1 Lithuanian Litas is adequate 216.289 Chilean Peso.

Step by step solution

01

Concept Introduction 

Exchange rate is that the rate at which domestic currency is exchanged with foreign currency. charge per unit provides the relative price of fine in terms of domestic and foreign currency. rate is extremely volatile and it affects the economy's foreign trade. rate may be calculated as:

Exchange Rateet=Foreign pricelevelPfDomesticPricelevelPd

02

Explanation of Solution 

1 Chilean monetary unit is capable 0.00462344 Lithuanian Litas, similarly, 1 Lithuanian Litas is adequate 216.289 Chilean Peso.

This is the present rate of exchange of Lithuania and Chile and it shows that Chilean monetary unit is weaker than Lithuanian peso. In 2015 Lithuanian litas was replaced with European Euros.

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