Figure 6: Exchange rate data

*Exchange rate (One unit of foreign currency)**Value (LOVE $)*

US Dollar (US $)160

UK Sterling (UK ) 188

ZA Rand (ZA R) 8

Bit Coin 24 million

Use the exchange rate data to answer the following questions:

a. A tourist from LOVE Republic is going to London and wishes to convert LOVE $1

million to enjoy her holiday. Use the appropriate foreign exchange rate and calculate

how much foreign currency the tourist would obtain from the transaction? (2 Marks)

b. A LOVE Republic citizen visits her son who works in South Africa. Unfortunately, the

cold weather in JHB triggers a minor stroke and she was admitted to a private

hospital. The hospital bill come into R500 000. Calculate how much LOVE dollars are

needed from LOVE Republic to discharge her from hospital?

c. If the US$ exchange rate change from US$1= LOVE$160 to US$1 = LOVE $165,

what happens to the value (exchange rate) of the US$?