Currencies and Exchange Rates

Question 1

Which arguments did you include in your answer? Check all that apply.The most favorable exchange rates for an American were in March 2013.A US dollar could purchase the most Canadian dollars in March 2013.March 2013 would have been the best time to purchase the machinery.

Revolt · Accepted Answer

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Question 2

What is a currency exchange rate?

Revolt · Accepted Answer

C: the value of one currency in relation to another

Question 3

What has the president of Venezuela done by devaluating the bolivar?

Revolt · Accepted Answer

B: artificially increased the number of bolivars needed to buy one US dollar

Question 4

What is the expected effect of the devaluation among Venezuela’s population?

Revolt · Accepted Answer

A: rising inflation

Question 5

Now, put it all together.Explain how a rise in currency value would affect a country’s ability to import and export goods.Give your answer in at least two to three complete sentences.

Revolt · Accepted Answer

When a country's currency value rises, its exports become more expensive for foreign consumers, which typically leads to a decrease in exports. Conversely, a stronger currency increases the country's purchasing power abroad, making imported goods cheaper and leading to an increase in imports.

Question 6

For this table, the reference currency is the .The exchange rate of the euro to the US dollar and most other currencies is determined by .According to the chart, one euro would buy Swiss francs.It would cost US dollars to buy one euro

Revolt · Accepted Answer

B: euro

Question 7

Question 7

Revolt · Accepted Answer

In October 2012, one US dollar could buy about Canadian dollars.The exchange rate remained unchanged from .The US dollar grew stronger against the Canadian dollar from .: 0.98; In October 2012, one US dollar could buy about Canadian dollars.The exchange rate remained unchanged from .The US dollar grew stronger against the Canadian dollar from .: Dec. 2012 to Jan. 2013; In October 2012, one US dollar could buy about Canadian dollars.The exchange rate remained unchanged from .The US dollar grew stronger against the Canadian dollar from .: Jan. 2013 to Mar. 2013

Question 8

In October 2012, one US dollar could buy about Canadian dollars.The exchange rate remained unchanged from .The US dollar grew stronger against the Canadian dollar from .

Revolt · Accepted Answer

B: 0.98

Question 9

According to the graph, when would have been the best time for an American to buy a piece of machinery manufactured in Canada?Explain your answer in at least two complete sentences.

Revolt · Accepted Answer

I need more time to think about this question.

Question 10

Sample Response: If a country experiences a rise in value, it will trade at a higher exchange rate. This rise in value will cause the prices of exports to increase, so other countries may be less willing to buy these goods. At the same time, the rise in value will make it easier and cheaper to import goods. Which factors did you discuss in your answer? Check all that apply.how the price of exports will increasehow the price of imports will decreasehow neighboring countries may be less willing to

Revolt · Accepted Answer

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Currencies and Exchange Rates Answers

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