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

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Question;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-?-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

Paper#45116 | Written in 18-Jul-2015

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