Question

Suppose we have the following exchange rate quotes:
  

	in US$	per US$
Euro area (€)	1.3604	.7351
Mexico (Ps)	.0781	12.8041

  
a. If you have $200, you can get euros. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Use the €/$ exchange rate in your calculation.)
  
b. One euro is worth $ . (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)
  
c. If you have 5,500,000 euros, you have $ . (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Use the $/€ exchange rate in your calculation.)

d. You can get Mexican pesos for a euro. This type of rate is called (Click to select)foreign currencyexchange ratemixed ratecross rate . (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)

Answer 1

		in US$	per US$
	Euro area (€)	1.3604	0.7351
	Mexico (Ps)	0.0781	12.8041
a	If you have $ 200 you can get euros (200*0.7351)				147.02	Euros
b	One Euro is worth $ 1.3604
c	If you have 5500000 euros you have $ (5500000*1.3604)				7482200	dollars
d	You can get Mexican pesos for a euro. This type of rate is called cross rate foreign currency exchange rate