1. One major disadvantage to the gold standard is the exchange rate risk that it brings to each nation which chooses to use it.

True

False

2. Use the following chart to answer the next two questions.

2/17	2/18	2/19
.8/$	$1.30/	.9/$
125/$	122/$	$.007/
1.1/$	/$.85	$.95/

What is the percentage appreciation/depreciation of the Euro from the US point of view from 2/17 to 2/18? Round intermediate steps and your final answer to four decimals. Express your answer in decimal format (ex. .XXXX)

3.What is the percentage appreciation/depreciation of the dollar from the Japanese point of view from 2/18 to 2/19?

		-.1460
		.1710
		-.024
		.1460

4. Suppose that the value of the Thai baht depreciates by 6% from the Japanese point of view. What is the percentage appreciation/depreciation of the yen from the Thai point of view? Enter your answer in decimal format and round any intermediate steps and for final answer to four decimals (EX: .XXXX).

5. Suppose that the British pound was worth .95 euros one year ago. Today, each euro is worth 1.1 pounds. Find the percentage appreciation/depreciation of the euro from the British point of view. (Round any intermediate steps to four decimal places)

6. Suppose you observe the following quotes between the Canadian dollar (C$) and the Swiss franc (SFr):

1/1/15: SFr.8/C$

12/1/15: C$1.3/SFr

Find the percentage change in the value of the Swiss franc from the Canadian point of view. Round intermediate steps and your final answer to four decimals. Enter your answer in decimal format (EX: .XXXX).