# If1 British pound can beexchanged for 180centsof U.S. currency

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## Description

If1 British pound can beexchanged for
180centsof U.S.
currency, what fraction
should beused to computethe
indirect quotation of the exchangerate
expressed in British pound
s?

A.1/180

B.1/.56

C.1.8/1

D.1/1.8

2. Supposethe direct
foreign exchangerates
in U.S.dollars ar
e:

1 Singaporedollar =\$.7025

1 Cyprus
pound =\$2.51
32

Based on theinformationgivenabove, the indirectexchangeratesforthe Singaporedollarand
the

Cyprus Pound (fromaU.S.
perspective)ar
e:

A.1.7655
Singaporedollarsand
1.4235 Cyprus pounds respectiv
ely.

B.0.2975 Singaporedollarsand 1.5132 Cyprus pounds respectively. C.2.1622 Singaporedollarsand
0.4625 Cyprus pounds respectiv
ely.

D.1.4235
Singaporedollarsand 0.3979 Cyprus pounds respectiv
ely.

3. Supposethe direct
foreignexchangerates
in U.S.dollars ar
e:

1 Singaporedollar =\$.7025

1 Cyprus
pound =\$2.51
32

Based on theinformation
givenabove, how manyU.S.
dollars must be paid for
apurchaseof citrus fruits
costing10,000 Cyprus
pound
s?

A.\$25,132

B.\$15,132

C.\$3,979

D.\$35,775

4. Supposethe direct
foreign exchangerates in U.S.dollars ar
e:

1 Singaporedollar =\$.7025

1 Cyprus
pound =\$2.51
32

Based on theinformation
givenabove, how manySingaporedollars arerequired to purchasegoods
costing10,000 US dolla
rs?

A.7,025

B.14,235

C.17,655

D.2,975

5. Upon arrival in Chile,
Karen
exchanged \$1,000 ofU.S. currencyinto
480,000 Chilean Pesos. While returningafter
her two month visit,
she exchangedher remaining50,000
Pesos into \$100 of U.S. currency.
What
amount of gain or alossdid
Karenexperienceon the 50,000 pesos sheheld
duringher visit
and converted to U.S.
dollars
at thedepartured
ate?

A.Loss
of \$4. B.G
ain of \$4.

C.Loss of \$6.

D.No
g
ain or loss.

6. Chicago based
Corporation X has anumberof
importingtransactions
with companies based in
UK.

Importingactivities
resultin payables.If
thesettlement
currencyis
the
British Pound, whi
ch
of the

followingwillhappen
by
changes
in thedirect or indirect exchanger
ates?

A.Option A B.Option B C.Option C D.Option D

7. Chicago based
Corporation X has anumberof exportingtransactions
with companies based in Swed
en.

Exportingactivities
resultin receivables.If the
settlement currencyis
the
Swedish Krona, which
of the followingwillhappen
by
changes
in thedirect or indirect exchanger
ates?

A.Option A B.Option
B C.
Option C D.
Option D

8. Corporation X has
anumber of exportingtransactions with companies based in Vietnam. Exporting activities resultin receivables.If
thesettlement
currencyis
the
US dollar, which
of thefollowingwill
happen bychanges in thedirect or indirect exchanger
ates?

A.Option A B.Option B C.Option C D.Option D

9. HeavyCompanysold
metal scrap to aBrazilian
companyfor 200,000Brazilian reais
on December
1,

20X8, with payment dueon
January20, 20X9. The exchangerates
wer
e:

Based on theprecedinginformation, which ofthefollowingis trueof dollar’s
movement v
is-Ã -vis

Brazilian
real duringthep
eriod?

A.Option A B.Option B C.Option C D.Option D

10. HeavyCompanysold
metal scrap to aBrazilian
companyfor 200,000Brazilian reais
on December
1,

20X8, with payment dueon
January20, 20X9. The exchangerates
wer
e:

Based on theprecedinginformation, what is theHeavy’s
overallnetgainor
net loss
from its foreign currencyexposurerelated to this
transactio
n?

A.\$4,860
loss

B.\$2,600
loss

C.\$9,018gain

D.\$2,260
gain

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