Keep the Highest: 12 tempts: . Pricing foreign goods The nominal exchange rate i
ID: 1167122 • Letter: K
Question
Keep the Highest: 12 tempts: . Pricing foreign goods The nominal exchange rate is the price of one currency in terms of another currency. A nominal exchange rate specifies how many units of one country's currency are needed to buy one unit of another country's currency Suppose the following table presents nominal exchange rate data for November 26, 2014, in terms of U.S. dollars per unit of foreign currency. Use the information in the table to answer the questions that follow. Foreign Currency Brazilian real (BRL) Canadian dollar (CAD) Euro (EUR) Japanese yen (JPY) Mexican peso (MXN) Cost of One Unit of Foreign Currency (Dollars) 0.4067 0.7950 1.2035 0.009 126 0.0920 1.8011 United Kingdom pound (GBP) Suppose that on November 26, 2014, an ornamental bookcase handmade in the United price of the bookcase would boe Kingdom is priced at GBP S70. The approximate u.S. dollar If the nominal exc hange rate for the u.S. doller-Japanese yen rises from $0.009126 to $0.0109512 per Japanese yen, the Japanese yen ? in value, or , relative to the US. dollar. ?Explanation / Answer
$1026.627 or $1026.63.
GBP 570 x $1.8011= $1026.63.
Increases, appreciates.
Previously, one Japanese Yen could be purchased in exchange for $0.0109512, now we have to pay more U.S. dollars ( $0.019512) to purchase one Japanese Yen.
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