QUESTION01: The exchange rate at the beginning of the year was SF1.0000/$. The price level of a typical consumption basket in Switzerland was SF120/SFCB and the price level of a typical consumption basket in the United States was also $100/$CB at the beginning of the year. Calculate the real exchange rate at the beginning of the year.

SFCB0.6667/$CB

SFCB0.8333/$CB

SFCB1.0000/$CB

SFCB1.3333/$CB

SFCB1.6667/$CB