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Worksheets

Exchange Rates

Total questions: 15

Worksheet time: 4hrs 45mins

Name
Class
Date
1.

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

a)

£1800

b)

£2813

c)

£2250

d)

None of the answers

e)

£1700

2.

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

a)

£0.80

b)

£0.85

c)

£0.75

d)

£1.25

e)

None of the answers

3.

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

a)

8.7 Yuan

b)

10 Yuan

c)

9.5 Yuan

d)

7.9 Yuan

4.

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

a)

Currency

b)

Good

c)

Cost

d)

Interest rate

e)

None of the answers

5.

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

a)

$1.19

b)

$1.11

c)

$1.06

d)

$1.29

6.

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?

a)

Exports to US will become more expensive and decrease

b)

Exports to US will become cheaper and increase

c)

Exports to US will stay the same

d)

None of the answers

e)

Exports to US will become cheaper and decrease

7.

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?

a)

Imports from the US will be more expensive and decrease

b)

Imports from the US will be cheaper and increase

c)

Imports from the US will stay the same

d)

None of the answers

8.

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

a)

Prices of exports

b)

Costs of imports

c)

Competiveness

d)

None of the answers

9.

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

a)

Tastes and preferences

b)

Income

c)

Price

d)

Interest rates

e)

None of the answers

10.

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

a)

Right

b)

Left

c)

Stay the same

d)

None of the answers

11.

If US businesses demand more Chinese currency, which way will the demand curve shift?

a)

Right

b)

Left

c)

Stay the same

d)

None of the answers

12.

If the demand curve shifts to the right, what will happen to $/Y in the graph?

a)

Appreciate

b)

Depreciate

c)

Stay the same

d)

None of the answers

13.

If the supply curve shifts to the right, what will happen to $/Y in the graph?

a)

Appreciate

b)

Depreciate

c)

Stay the same

d)

None of the answers

14.

What is the currency of Japan? (Google if needed)

a)

Yen

b)

Yin

c)

Yan

d)

Yuan

e)

None of the answers

15.

If the equilibrium point is 7.14 Y per $1 on this graph, what will the equilibrium point on graph that shows $/Y?

a)

$0.14/Y

b)

$0.18/Y

c)

$0.12/Y

d)

$0.16/Y