Question

In: Economics

Dollar/Franc Exchange Values U.S $ Equivalent Currency per U.S. $ Wed. Tue. Wed. Tue. Switzerland (franc)...

Dollar/Franc Exchange Values

	U.S $ Equivalent		Currency per U.S. $
	Wed.	Tue.	Wed.	Tue.
Switzerland (franc)	0.7207	0.7225

a) Fill in the last two columns of the table with the reciprocal price of the dollar in terms of the franc.

b) On Wednesday, the price of the two currencies was _________ dollars per franc, or francs per dollar.

c) From tuesday to Wednesday, the dollar (appreciated/depreciated) against the franc; the franc (appreciated/depreciated) against the dollar.

d) On Wednesday, the cost of buying 100 francs was ____ dollars; the cost of buying 100 dollars was ____ francs.

Expert Solution

Currency

U.S $ Equivalent

Currency per U.S. $

Wed.

Tue.

Wed.

Tue.

Switzerland (franc)

0.7207

0.7225

1.3875

1.3841

On Wednesday, the price of the two currencies was 0.72 dollars per franc, or 1.3875 francs per dollar.

From tuesday to Wednesday, the dollar depreciated against the franc; the franc appreciated against the dollar.

On Wednesday, the cost of buying 100 francs was 72.07 dollars; the cost of buying 100 dollars was 1.3875 francs

Rahul Sunny answered 2 years ago

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