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 pounds?
A.1/180
B.1/.56
C.1.8/1
D.1/1.8
2. Supposethe direct
foreign exchangerates
in U.S.dollars are:
1 Singaporedollar =$.7025
1 Cyprus
pound =$2.5132
Based on theinformationgivenabove, the indirectexchangeratesforthe Singaporedollarand
the
Cyprus Pound (fromaU.S.
perspective)are:
A.1.7655
Singaporedollarsand
1.4235 Cyprus pounds respectively.
B.0.2975 Singaporedollarsand 1.5132 Cyprus pounds respectively. C.2.1622 Singaporedollarsand
0.4625 Cyprus pounds respectively.
D.1.4235
Singaporedollarsand 0.3979 Cyprus pounds respectively.
3. Supposethe direct
foreignexchangerates
in U.S.dollars are:
1 Singaporedollar =$.7025
1 Cyprus
pound =$2.5132
Based on theinformation
givenabove, how manyU.S.
dollars must be paid for
apurchaseof citrus fruits
costing10,000 Cyprus
pounds?
A.$25,132
B.$15,132
C.$3,979
D.$35,775
4. Supposethe direct
foreign exchangerates in U.S.dollars are:
1 Singaporedollar =$.7025
1 Cyprus
pound =$2.5132
Based on theinformation
givenabove, how manySingaporedollars arerequired to purchasegoods
costing10,000 US dollars?
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 thedeparturedate?
A.Loss
of $4. B.Gain of $4.
C.Loss of $6.
D.No
gain or loss.
6. Chicago based
Corporation X has anumberof
importingtransactions
with companies based inUK.
Importingactivities
resultin payables.If
thesettlement
currencyis
the
British Pound, which
of the
followingwillhappen
by
changes
in thedirect or indirect exchangerates?
A.Option A B.Option B C.Option C D.Option D
7. Chicago based
Corporation X has anumberof exportingtransactions
with companies based in Sweden.
Exportingactivities
resultin receivables.If the
settlement currencyis
the
Swedish Krona, which
of the followingwillhappen
by
changes
in thedirect or indirect exchangerates?
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 exchangerates?
A.Option A B.Option B C.Option C D.Option D
9. HeavyCompanysold
metal scrap to aBrazilian
companyfor 200,000Brazilian reais
on December1,
20X8, with payment dueon
January20, 20X9. The exchangerates
were:
Based on theprecedinginformation, which ofthefollowingis trueof dollar’s
movement vis-Ã -vis
Brazilian
real duringtheperiod?
A.Option A B.Option B C.Option C D.Option D
10. HeavyCompanysold
metal scrap to aBrazilian
companyfor 200,000Brazilian reais
on December1,
20X8, with payment dueon
January20, 20X9. The exchangerates
were:
Based on theprecedinginformation, what is theHeavy’s
overallnetgainor
net loss
from its foreign currencyexposurerelated to this
transaction?
A.$4,860
loss
B.$2,600
loss
C.$9,018gain
D.$2,260
gain
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