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Let\'s look at the \"old\" foreign exchange rate: US$1 Euro$4 Based on the old r

ID: 3058013 • Letter: L

Question

Let's look at the "old" foreign exchange rate: US$1 Euro$4 Based on the old rte, can you figure out the opposite: Euros|e USS? Let's look at the "new" foreign exchange: USS1 Euro$2 Based on the new rate, can you figure out the opposite: Euros1-USS? Compared with the "old" rate, the "new" rate indicates: The value of US dollar goes up or down? The vale of Euro goes up or down? As a "reasonable" American tourist buying European products in European Union with S1,000 in the pocket Based on the "old" rate, how much Euro can you exchange for $1,000? Based on the "new" rate, how much Euro can you exchange for $1,000? As a "reasonable" American tourist, which rate do you prefer, old or new? As a "reasonable" European tourist buying American products in the U.S. with EuroS1,000 in the pocket: Based on the "old" rate, how much U.S. dollars can you exchange for Euro$1,000? Based on the "new" rate, how much U.S. dollars can you exchange for Euro$1,000? As a "reasonable" European tourist, which rate do you prefer, old or new? From an American tourist's perspective: Buying European products in European Union makes him/her look like an American Importer or an exporter? From an American retailer's perspective Selling American products to European tourist in the U.S. makes him/her look like an American Importer or an exporter?

Explanation / Answer

Let's look at the "old" foreign exchange rate: US$1 Euro$4 Based on the old rte, can you figure out the opposite: Euros|e USS? Let's look at the "new" foreign exchange: USS1 Euro$2 Based on the new rate, can you figure out the opposite: Euros1-USS? Compared with the "old" rate, the "new" rate indicates: The value of US dollar goes up or down? The vale of Euro goes up or down? As a "reasonable" American tourist buying European products in European Union with S1,000 in the pocket Based on the "old" rate, how much Euro can you exchange for $1,000? Based on the "new" rate, how much Euro can you exchange for $1,000? As a "reasonable" American tourist, which rate do you prefer, old or new? As a "reasonable" European tourist buying American products in the U.S. with EuroS1,000 in the pocket: Based on the "old" rate, how much U.S. dollars can you exchange for Euro$1,000? Based on the "new" rate, how much U.S. dollars can you exchange for Euro$1,000? As a "reasonable" European tourist, which rate do you prefer, old or new? From an American tourist's perspective: Buying European products in European Union makes him/her look like an American Importer or an exporter? From an American retailer's perspective Selling American products to European tourist in the U.S. makes him/her look like an American Importer or an exporter?