Use the following table to answer the following next 6 questions

USD ($) GBP () CAD ($) EUR () AUD ($) MXN ($)

USD 1 1.492 0.80 1.14 0.7407 0.05

GBP 0.670 1 0.58 0.81 0.55 0.043

CAD 1.25 1.724 1 1.523 0.95 0.076

EUR 0.877 1.234 0.656 1 0.60 0.048

AUD 1.35 1.818 1.053 1.667 1 0.081

MXN 19.8 23 13.157 20.833 12.234 1

1. Oliver lives in Canada and received 55 from his grandfather in England as a birthday gift.

How much would this be in Canadian Dollars?

2. Kim lives in Sydney, Australia and received $40 USD from her aunt that was visiting from the

U.S. How many AUD would she have if she converts her money to the local currency?

3. Diana has $300 Mexican Pesos. She wants to buy a video game that costs $25 CAD. After

converting her money to Canadian Dollars, does she have enough to buy the game? If yes,

how much left over CAD does she have? If no, how many more CAD does she need?

4. Robert wants to buy a tennis racquet that costs $250 USD. He has 175 (GBP) saved so far.

Has he saved enough already to buy the racquet or does he need to save more? Explain your

answer.

5. Which currency in the table has the highest valued currency unit? Explain why.

6. Which currency in the table has the lowest valued currency unit? Explain why.

Answer the following questions. Convert the currencies given the exchange rate stated in each question. Make sure to show the units (USD, Euros, AUD, ) in your answer. If you only have a result but no units,you will not receive credit. Round to two decimals.

7. How many Dollars would I have if I convert 750 (euros) to USD (U.S. Dollars)? The exchange rate is 0.826 Euros per USD.

8. How many Euros do I need to exchange if I need to pay for a purchase in USD of $382. The exchange rate is 1.21 USD per Euro.

9. If the exchange rate is 1.19 USD per Euro, how many Dollars would I have if I exchange 410.40 (Euros)?

10. You are selling your US product in Japan. What should be the price in Japanese Yen if you normally sell the product for $15 USD? The exchange rate today is 99.90 (Yen) per US Dollar.

11. If I sell Mexican coffee at $175 pesos per bag and I want to start exporting to Brazil; what would be the price in Brazilian Real (BRL)? The exchange rate is R$ 0.21 (BRL) per Mexican Peso.

12. What is the cost in USD if a vacation package to Chile is advertised at $1,286,950 Chilean Pesos? The exchange rate is 735.40 Chilean Pesos per USD.

13. While on business travel, you go to a restaurant in Mexico. A glass of wine costs $114 pesos.

You normally would buy a glass of wine in the U.S. for 7 USD. Is this a good price for you?

Should you go ahead and get the wine or wait until you go back home?? Explain your answer.

The exchange rate at the restaurant is 19 pesos per Dollar.

14. Where should Michael buy his TV, in the UK at 250 (GBP) or in France at 299 Euros? The

exchange rate is 1.22 Euros per GBP.

15. Your company had $1,0000,000 pesos in profit in its operations in Mexico. The exchange rate today

shows that the Mexican peso has appreciated against the USD. You are exchanging your profits into

US Dollars today. Is the new exchange rate good news or bad news for the company? Explain your

answer.

16. Annie wants to go on vacation next month. She has saved $1,200 Canadian Dollars to use towards

her vacation. Which option would give Annie a better deal for her money? Mexico or the U.S.? She

looks up the Canadian dollar exchange rates and they are as follows:

0.75 USD per CAD

14.70 MXN per CAD

Explain your answer.

4

17. The exchange rate between Chinas Yuan and Indias Rupee yesterday was 0.09 Yuan per

Rupee. If the exchange rate today is 0.08 Yuan per Rupee, Which currency appreciated in value?

Your company is manufacturing a product in India to later be sold in the U.S.A. The labor cost

per hour to manufacture the product is 110.60 Rupees (Indias currency). You see today that the

value of the Rupee against the USD has increased.

18. What would this change in currency value have on your operating expenses?

19. If everything else stays the same (all other costs and sales price) What implications would

this change in currency value have on your profit?

20. You are leaving Japan back to the U.S. You need to convert your money (Yen) back to

US dollars. You see 3 banks with the exchange rate for USD displayed in the window:

BANK A

Buy: 104.00

Sell: 105.55

BANK B

Buy: 105.55

Sell: 106.55

BANK C

Buy: 104.55

Sell: 105.00

Which bank should you select and how many USD would you get if you are exchanging 583,275

Yen