QUESTION04: 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. The exchange rate at the end of the year is SF0.9800/$. The price level of a typical consumption basket in Switzerland is SF123 and the price level of a typical consumption basket in the United States is $101 at the end of the year. Given the information above, calculate the change in the nominal exchange rate during the year.

-2.00%

2.04%

-3.00%

2.50%

3.00%