Understanding Exchange Rates - Michael Burbine | Biblioteka

If 1 American Dollar can buy 1 Japanese Yen, then 1 Japanese Yen can buy 1 American Dollar.

If 1 American Dollar can buy 1/2 Japanese Yen, then 1 Japanese Yen can buy 2 American Dollars.

If 1 American Dollar can buy 2 Japanese Yen, then 1 Japanese Yen can buy 1/2 American Dollars.

The secret, whichever currency is being used to buy the other, which ever currency is being spent, reduce down to 1! Whatever you use to reduce to 1 for that currency, do the same for the other currency.

For example:

$1 US = 2 Japanese Yen

$1 US/2 = 2 Japanese Yen/2

$1/2 US = 1 Japanese Yen

So an exchange rate can be expressed as Country A's Currency buying Country B's currency...

OR

Country B's Currency buying Country A's currency.

1

If 1 American Dollars can buy 1/3 of a Canadian Dollar, then 1 Canadian Dollar can buy ________ American Dollars.

1

If 1 American Dollars can buy 4 Australian Dollars, then 1 Australian Dollar can buy ________ American Dollars.

1

If 3 American Dollars can buy 5 New Zealand Dollars, then 1 New Zealand Dollar can buy ________ American Dollars.

1

If 3 American Dollars can buy 2 Singapore Dollars, then 1 Singapore Dollar can buy ________ American Dollars.

1

Match the following! Partner UP! One person calculate May and the Other calculate August! HINT: First one....May: A dinner for two that costs 500 Mexican pesos--> 500*0.1101

Stavka koja se može prevući		Odgovarajuća stavka
May: A BMW that costs 85,000 euros in Germany		May: $55.05
May: A pound of Swedish meatballs that costs 30 krona		August: $75.10
August: A BMW that costs 85,000 euros in Germany		May: $249.00
August: A pair of pants that costs 72 pounds in London		August: $270.00
August: A leather jacket that costs 1,800 Canadian dollars		May: $73,977.37
May: A pair of pants that costs 72 pounds in London		August: $77,343.04
May: A leather jacket that costs 1,800 Canadian dollars		May: $2.82
August: A hotel room that costs 30,000 Japanese yen		August: $2.79
May: A dinner for two that costs 500 Mexican pesos		May: $101.41
May: A hotel room that costs 30,000 Japanese yen		August: $128.57
August: A pound of Swedish meatballs that costs 30 krona		May: $1,152.00
August: A dinner for two that costs 500 Mexican pesos		August: $1,134.00

1

From May to August, what happened to the US dollar with respect to each of the following currencies? Find the answer by looking at the table or exchange rates OR looking at how the price change

	US Dollar Appreciated (Cost LESS $ over time)	US Dollar Depreciated (Cost MORE $ over time)
British Pound
Canadian Dollar
European Euro
Swedish Krona
Japanese Yen
Mexican Peso

	US Dollar Appreciated (Cost LESS $ over time)	US Dollar Depreciated (Cost MORE $ over time)
British Pound
Canadian Dollar
European Euro
Swedish Krona
Japanese Yen
Mexican Peso