Scribd Logo
Upload

Welcome to Scribd!

  • Exercise - Chapter 2

    Uploaded by

    Tường Vyv
    18 views2 pages
    This document discusses exchange rates and contains questions about: 1) Defining exchange rates using different methods like the gold standard, purchasing power parity, and cross exchange rates, as well as the advantages and disadvantages of each. 2) Factors that affect exchange rates. 3) How exchange rates are impacted when the supply of foreign currency decreases and demand increases, or vice versa. 4) Calculating cross exchange rates between different currency pairs. 5) Calculating income in different currencies based on exchange rates.

    Original Description:

    Original Title

    Exercise - chapter 2

    Copyright

    © © All Rights Reserved

    Available Formats

    DOC, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document discusses exchange rates and contains questions about: 1) Defining exchange rates using different methods like the gold standard, purchasing power parity, and cross exchange rates, as well as the advantages and disadvantages of each. 2) Factors that affect exchange rates. 3) How exchange rates are impacted when the supply of foreign currency decreases and demand increases, or vice versa. 4) Calculating cross exchange rates between different currency pairs. 5) Calculating income in different currencies based on exchange rates.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    18 views2 pages

    Exercise - Chapter 2

    Uploaded by

    Tường Vyv
    This document discusses exchange rates and contains questions about: 1) Defining exchange rates using different methods like the gold standard, purchasing power parity, and cross exchange rates, as well as the advantages and disadvantages of each. 2) Factors that affect exchange rates. 3) How exchange rates are impacted when the supply of foreign currency decreases and demand increases, or vice versa. 4) Calculating cross exchange rates between different currency pairs. 5) Calculating income in different currencies based on exchange rates.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    EXERCISE – CHAPTER 2

    ***
    1. What is exchange rate? How to determine exchange rate under gold
    standard method; under Purchasing power parity; and under cross exchange
    rate method? Advantages and Disadvantages of each method?
    2. What factors affect to the exchange rate?
    3. What happen to the exchange rate when:
    - Supply for foreign currency decreases, Demand for foreign
    currencies increases.
    - Supply for foreign currency increases, Demand for foreign
    currencies decreases.

    4. Calculate the cross exchange rates below:


    1. AUD/USD = 0.9703/23
    EUR/USD = 1.1612/22
    USD/VND = 20,400/650
    Caculate AUD/VND; EUR/VND and EUR/AUD

    2. USD/JPY = 115.15/25
    USD/CNY = 7.7575/85
    USD/VND = 20,100/400
    Caculate JPY/VND ; CNY/VND and CNY/JPY

    3. USD/SGD = 1.5050/60
    NZD/USD = 0.7075/85
    USD/VND = 20,400/650
    Tính SGD/VND ; NZD/VND và NZD/SGD

    5. Calculate the income of firms in some case below :


    1. A Vietnamese exporter receives 250.000 EUR from exporting goods
    to Germany. Caculate its income in terms of USD. Supposing that
    EUR/USD = 1.3289/95

    2. A Vietnamese exporter receives 250.000 EUR from exporting goods


    to Germany. Caculate its income in terms of USD. Supposing that
    USD/EUR = 0.9723/50

    1
    2

    You might also like