6. 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 Cost of One Unit of Foreign Currency Foreign Currency (Dollars) Brazilian real (BRL) 0.3666 Canadian dollar (CAD) 0.8493 Euro (EUR) 1.3288 Japanese yen (JPY) 0.009748 Mexican peso (MXN) 0.0889 United Kingdom pound (GBP) 1.8965 Suppose that on November 26, 2014, a marble statue handmade in the United Kingdom is priced at GBP 530. The approximate U.S. dollar price of the statue would be _______ . If the nominal exchange rate for the U.S. dollar-Mexican peso rises from $0.0889 to $0.10668 per Mexican peso _______ , in value, or the _______ , relative to the U.S. dollar.

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The nominal exchange rate is the price of one currency in terms of another currency.

6. 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

Cost of One Unit of Foreign Currency

Foreign Currency (Dollars)

Brazilian real (BRL) 0.3666

Canadian dollar (CAD) 0.8493

Euro (EUR) 1.3288

Japanese yen (JPY) 0.009748

Mexican peso (MXN) 0.0889

United Kingdom pound (GBP) 1.8965

Suppose that on November 26, 2014, a marble statue handmade in the United Kingdom is priced at GBP 530. The approximate U.S. dollar price of the statue would be _______ .

If the nominal exchange rate for the U.S. dollar-Mexican peso rises from $0.0889 to $0.10668 per Mexican peso _______ , in value, or the _______ , relative to the U.S. dollar.

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milcah answered 2 years ago

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The nominal exchange rate is the price of one currency in terms of another currency.

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