Part 2 Country Foreign Exchange Spot Ratet (in dollars) France Switzerland Spain
ID: 1105222 • Letter: P
Question
Part 2 Country Foreign Exchange Spot Ratet (in dollars) France Switzerland Spain England iEuro =$1.25 i SW Franc = $ .80 $1.25 =$1.85 (in units of foreign exchange) S1 = 0.80 Euros $1 = 1.25 SwF SI = 0.80 Euros SI = 0.54054 Pound 1 Euro !pound . After Paris, you toured London. On Threadneedle Street you realized you still had 300 Euros in your wallet so you exchanged them for pounds at a local bank. How many pounds did you receive? 10. Your budget planning for the trip was to spend $4,000. At the time of your calculations six months before your trip, you estimated that at the then current exchange rate of 1 Euro 1.00S you would have about 4,000 Euros to spend. If you did convert and spend your $4,000 while abroad at current rates (from above chart), how much spending power did you lose from the time of planning to the actual trip? In Euros. answer - sheet 11. Does your answer in #10 represent an appreciation ordepreciation of the US , Dollars answer sheet 12 what was the % change in the value of the US Dollar in relation to the Euro between your planning phase and the actual trip in #10 indicate (+ or-and amount) answer sheet travels abroad, in terms of balance of trade accounts, (measured by the flow of dollars 13. When a U.S. tourists as payments or receipts for goods and services) is foreign travel by U.S. Citizens considered a U.S. Export or Import? -answer sheet 14.When the U.S. Dollar appreciates/depreciates (chose one-answer sheet), U.S. goods and Exports become more/less (chose one- answer sheet) expensive and U.S. Imports become more/less (c service ose one- answer sheet) expensive.Explanation / Answer
9) We know 0.8Euros =0.54 pounds
1 euro = 0.54/0.8 = 0.675 pounds
Pounds that one will get = 300*0.675 = 202.5 pounds.
10) Now, 1 dollar = 0.80 Euros
This implies $4000 = 3200 euros.
So loss in spending power = 4000-3200 = 800 euros.
11) Depreciation of US dollar , because you get less euros per dollar.
12.% change = (800/4000)*100 =20%