Question 1 The following exchange rates have been obtained from the official website of Westpac Banking Corporation (All Rates are in term of foreign currency units to one unit of Australian dollar) Currency 1/04/2018 30/06/2018 BID ASK MID BID ASK MID Canada (CAD) 1.0327 0.9377 0. 9852 10161 0.9224 0.9693 China (CNY) 5.0584 4.5688 4.8136 5.1070 4.6120 4.8595 Denmark (DKK) 4.8457 4.3723 4.6090 4.9517 4.4663 4.7090 Europe (EUR) 0.6561 0.5897 0.6229 0.6699 0.6020 0.6360 Japan (JPY) 85.8300 77.9500 81.8900 85.1600 77.3000 81.2300 Philippines (PHP) 42.0780 38.1500 40.1140 41.2960 37.4030 39.3495 New Zealand (NZD) 1.1078 1.0145 1.0612 1.1342 1.0384 1.0863 French Pacific (XPF 77.5900 69.3300 73.4600 79.7200 71.4600 75.5900 Switzerland (CHF 0.7687 0.6966 0.7327 0.7693 0.6966 0.7330 Thailand ( THB) 24.9800 22.6900 23.8350 25.4200 23.0600 24.2400 Tonga (TOP) 1.7797 1.5525 1.6661 1.7874 1.5045 1.6460 United Kingdom (GBP 0.5711 0.5154 0.5433 0.5902 0.5323 0.5613 USA (USD 0.8028 0.7257 0.7643 0.7703 0.6962 0.7333 Sources: https://www.westpac.com.aw/personal-banking/services/historical-rates/ Required: a. Explain the differences between devaluation/revaluation and depreciation appreciation. h Has AUD depreciated/appreciated against CAD, DKK and USD? Use the middle exchange rates to estimate the foreign exchange rate change during the 3-months ended as at 30* June, 2018. C. Explain how exchange rate changes recorded during the three month ended 30- June, 2018 in CAD, DKK and USD could have affected to the Australian balance of payments with each country. d. Estimate bid and ask spreads for CNY, EUR, NZD and TOP at 30* June, 2018. e . Estimate the cross exchange rates (bid and ask separately) in TOP for GBP and XPF as at 30* June, 2018. Convert the following cash flows as requested using the exchange rates as at 30- June, 2018. EUR100,000 advance payment to a prospective supplier in Germany. PHP value of AUD50,000, which is expected to be used by one of your friends for his forthcoming Philippine tour