Suppose a bank customer with Euro 1,000 wishes to trade out of euro and into Japanese...

Suppose a bank customer with Euro 1,000 wishes to trade out of euro and into Japanese yen. The dollar-euro exchange rate is quoted as $1.60 = Euro1.00 and the dollar-yen exchange rate is quoted at $1.00 = ¥120. How many yen will the customer get?

Solutions

Expert Solution

First we have to compute the Euro into USD

Euro to USD rate =	1.6

Therefore 1000 Euro =	$ 1,600.00
1000*1.6

now, we can convert the USD into Yen

USD to Yen =		¥ 120.00

Therefore, 1600 USD =	¥ 192,000
1600*120

ans =		¥ 192,000

jeff jeffy answered 1 year ago

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