Hello, and thanks for the question.
Suppose the exhange rate between British pounds and U.S. dollars is $1.35 per pound. What is the correct way write this pound-dollar exchange rate? The dollar-pound exchange rate?
1 GBP = 1.3500 USD
1 USD = 0.7407 GBP
Suppose the pound-dollar exchange rate is now 1.3500. Then, the U.S. dollar increases in value by 5 percent. What is the new pound-dollar exchange rate? What is the new exchange rate if the U.S. dollar appreciates by 10 percent?
1 GBP = 1.2825 USD (U.S. dollar increases in value by 5 percent)
1 GBP = 1.2150 USD (U.S. dollar appreciates by 10 percent)
Hope this helps!
Thank you for your help I really appreciate this so much. So how did you figure out these two problems?
I have another question to ask.
Indicate whether each of the tranactions below represents a credit(+) or a debt (-) item in a nation's BOP:
1. general electric corporation purchases electric swithces from a supplier in Germany.
2. Bell Helicopter sells new helicopters to a British oil field exploration company. is credit
3. Universal Studios makes the decision to begin building a new theme park in Singapore. Is debit
4. George Elwin has just received a dividend check for the stock he holds in British Airways. Is credit
5.Citigroup of New York agrees to provide insurance for goods shipped by the International Furniture Mart of Copenhagen to a London wholesale house. Is debit
6.Carlos Mendoza sends his paycheck from San Diego, California, to his family in Mexico City. Is Credit
Could someone check and see did I do this problem right?