Mr. Weiss

1. Mr. Weiss Exchange Rates - Section 8 - Module 42 Currency markets establish the international value of a nation's monetary unit. The exchange rate determined in these markets is a function of the supply of, and the demand for, these various currencies. The following table lists fictional exchange rates for selected countries:

2. Mr. Weiss Exchange Rates - Section 8 - Module 42 Currency markets establish the international value of a nation's monetary unit. The exchange rate determined in these markets is a function of the supply of, and the demand for, these various currencies. The following table lists fictional exchange rates for selected countries: Using the values in the table above, calculate the following: 1. A $150.00 hotel room in the U.S. would cost a Japanese tourist _____________ yen. 2. A $30,000.00 American car would cost a Canadian citizen ______________Canadian dollars. 3. A $15.00 compact disk from the U.S. would cost a person from France ___________ euros. 4. A $5,000.00 Canadian dollar fly-in fishing trip would cost an American _____________dollars. 5. A $2,000.00 weekend at Disneyworld in Orlando, Florida would cost someone from England _________ British pounds.

3. Mr. Weiss Exchange Rates - Section 8 - Module 42 Currency markets establish the international value of a nation's monetary unit. The exchange rate determined in these markets is a function of the supply of, and the demand for, these various currencies. The following table lists fictional exchange rates for selected countries: Using the values in the table above, calculate the following: 1. A $150.00 hotel room in the U.S. would cost a Japanese tourist __22,500________ yen. 2. A $30,000.00 American car would cost a Canadian citizen ___42,000_________Canadian dollars. 3. A $15.00 compact disk from the U.S. would cost a person from France __12_______ euros. 4. A $5,000.00 Canadian dollar fly-in fishing trip would cost an American __3,571.43___________dollars. 5. A $2,000.00 weekend at Disneyworld in Orlando, Florida would cost someone from England __100,000____ British pounds.

4. Mr. Weiss Exchange Rates - Section 8 - Module 42 Answer the following questions using the assumption that the values in Table 1 have changed to those shown in Table 2.

5. Mr. Weiss Exchange Rates - Section 8 - Module 42 Answer the following questions using the assumption that the values in Table 1 have changed to those shown in Table 2. 6. American made goods would become relatively ______________ to citizens of other countries. 7. Foreign made goods in America would become relatively ________________________. 8. The price of domestically made goods in America would ___________________________. 9. American exports would ______________ (rise or fall). 10. American imports would ______________ (rise or fall) 11. The U.S. dollar has ___________________ (from the values shown in Table 1 to those shown in Table 2.

6. Mr. Weiss Exchange Rates - Section 8 - Module 42 Answer the following questions using the assumption that the values in Table 1 have changed to those shown in Table 2. 6. American made goods would become relatively _less expensive_________ to citizens of other countries. 7. Foreign made goods in America would become relatively __more expensive______________________. 8. The price of domestically made goods in America would __not be affected by changes in exchange rates____. 9. American exports would __rise________ (rise or fall). 10. American imports would ___fall_______ (rise or fall) 11. The U.S. dollar has __depreciated (devalued)___ (from the values shown in Table 1 to those shown in Table 2.

7. Mr. Weiss Exchange Rates - Section 8 - Module 42