The picture above was taken some time ago at an airport in Mexico and shows two competing currency exchanges. Mexico uses the peso as its currency (abbreviation: MXN). Each exchange will buy foreign currency for pesos at the price (in pesos) on the left, and sell foreign currency for pesos at the price on the right. The left kiosk (Money Exchange) lists prices, from top to bottom, for the United States Dollar (USD), Euro (EUR), Great British Pound (GBP) and Canadian Dollar (CAD). The exchange on the right (Alfa & Omega Currency) does these in a slightly different order: USD, EUR, CAD, GBP.

1. Suppose that neither kiosk has any fees.
   1. You have $1,000 that you would like to convert to MXN. Which kiosk would you use and how many pesos would you end up with?
   2. Suppose that while you are in Mexico, you spend 10,000 MXN, and when you return the prices at each booth do not change. You want to convert your money back into USD. Which exchange has the better price and how many dollars do you get back? You can assume that your only source of pesos is what you received in part (a).
2. Suppose instead that you are on a pit stop here in Mexico from Germany. While there you earned 10,000 ( is the symbol for Euros, EUR). Using these exchanges you want to convert this money into USD. Which exchange(s) would you use and how many dollars would you end up with?
3. If I didnt explicitly tell you that the prices on the left were for (from your perspective) foreign currency to peso transfers and the that prices on the right were for pesos to the foreign currency, you should still have been able to figure this out based on your understanding of financial transactions (i.e. not from reading buy and sell from the signs). How?
4. Today, the exchange rate is closer to 20MXN/USD.
   1. Since this picture was taken, has the dollar appreciated (i.e. gotten stronger/more valuable) relative to the peso, or has it depreciated (gotten weaker/less valuable)?
   2. Using a reasonable number/estimate from the picture above, how would you describe the percent change in the value of the currency between then and now? You should be able to do this in reference to the dollar (i.e. the dollar [ap/dep]reciated against the peso by x%) or in reference to the peso (i.e. the peso [ap/dep]reciated against the dollar by y%). Note that x and y here are not equal!

LA OM Eain ts Earthas 12.75 13.20 0 17.00 17.50 22. 10. 22.30 100 1145 -12.00 NDO