Question
Figure 6: Exchange rate data *Exchange rate (One unit of foreign currency)**Value (LOVE $)* US Dollar (US $)160 UK Sterling (UK ) 188 ZA Rand
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 $165,
what happens to the value (exchange rate) of the US$?
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