1 us dollar= 3.88 brazilian reals --------1 brazilian real= 0.26 us dollar

1 us dollar= 0.91 european union euros-------- 1 european union euros= 1.10 us dollar

1 us dollar= 67.09 indian rupees ---------1 indian rupees = 0.01 us dollar

1 us dollar = 17.35 mexican pesos . -----1 mexican pesos= 0.06 us dollars

1 us dollar= 36.10 thai baht ---------1 thai baht = 0.02 us dollar

AOF Business Economics Lesson 12 Currency Systems 4. Mike Tevee is an amateur investor who has started speculating in currencies. A year ago he heard a rumor that the Thai baht was about to rise in value because of a change in govenment and he bought 150,000 baht for $3,000. Given the value of the baht today, did Mike make a good investment? The Mercury Athletic Shoes company has a factory in Thailand. Each month it must pay $500,000 in salaries to employees at the factory. How many Thai baht must it purchase in order to make this payment? The American Furniture Company buys tons of renewable hardwood each year from Brazil. This year it has allocated $400,000 to purchase the wood. How much is this in Brazilian reals? If the value of the real goes up to 0.46 of a US dollar, how much more, in dollars, will the American Furniture Company have to pay for the same amount of wood? 6. Zeppo Automobiles is a new car company based in Germany. This year it made a profit of $10 million on cars sold in the United States. It converted these dollars into euros. How many euros did it make in profits on these sales? 7. Extra Credit The Delish International Food Company decided to protect its earnings from currency fluctuations by investing in several currencies. It invested $1 million in the 500,000 in the Brazilian real. The dollar fell 5%, the real rose 10%, and the euro stayed the same. How much to keep all of the money in dollars? 8. euro, $1 million in the US dollar, and money, in US dollars, did the company make or lose? Would it have been better