Exchange Rates

If the exchange rate is £1 = $1.25, what is $2250 equivalent to in £ pounds?

• £1800

• £2813

• £2250

• None of the answers

• £1700

If the exchange rate is £1 = $1.25, how much does $1 equal in £ pounds?

• £0.80

• £0.85

• £0.75

• £1.25

• None of the answers

Use Google to find this answer. Approximately how much is £1 equal to in Chinese Yuan? Select closest answer.

• 8.7 Yuan

• 10 Yuan

• 9.5 Yuan

• 7.9 Yuan

Fill in the blank. The definition of an exchange rate is the price of one currency in terms of another __________.

• Currency

• Good

• Cost

• Interest rate

• None of the answers

If £1 = €1.26 and £1 = $1.50, approximately how much does €1 equal in $ dollars?

• $1.19

• $1.11

• $1.06

• $1.29

You are a UK business that exports to the US market. If the £1 goes from being equal to $1.25 to $1.50, what will happen to your exports to the US?

• Exports to US will become more expensive and decrease

• Exports to US will become cheaper and increase

• Exports to US will stay the same

• None of the answers

• Exports to US will become cheaper and decrease

You are a UK business that imports a lot of supplies from the US market. If the £1 goes from being equal to $1.25 to $1.50, what will happen to your imports from the US?

• Imports from the US will be more expensive and decrease

• Imports from the US will be cheaper and increase

• Imports from the US will stay the same

• None of the answers

Select all of the following that will be impacted by a change in exchange rates:

• Prices of exports

• Costs of imports

• Competiveness

• None of the answers

Select all the following determinants that shift the supply and demand curves for exchange rates:

• Tastes and preferences

• Income

• Price

• Interest rates

• None of the answers

If Chinese demand more US currency and sell their Yuan, which way will the supply curve shift?

• Right

• Left

• Stay the same

• None of the answers