Q1) You bought 9,990 Mexican Pesos for 18 Pesos per one US dollar, and you put them in a Mexican Peso bank account. Six months later you withdrew all the Pesos and converted them to US dollars at an exchange rate of 30 Pesos per one US dollar. What was your US dollar profit or loss? (Enter a negative sign if it was a loss)

Q2) You are coming back from a trip to Japan and you still have 4,884 yen in your wallet. How many US dollars will you receive if you convert all this yen into US dollars at an exchange rate of 132 yen per one US dollar (include only the number and not the $ sign)

Q3) When can firms address the negative impacts from foreign exchange by passing the losses through to their customers by raising prices on the goods or services sold to those customers.?

	A	Firms control their prices, but they can never recover their foreign exchange losses by raising prices because customers will not pay higher prices to cover those losses
	B	Firms control their prices, so they can always raise prices and thereby recover the foreign exchange losses, but foreign exchange hedging is a cheaper way to avoid those losses
	C	Firms do not control their prices, and cannot make price adjustment to recover foreign exchange losses
	D	Firms can sometimes recover foreign exchange losses by raising prices but only when customers are willing to pay those higher prices, so this often is not an effective strategy