Question
Suppose the exchange rate between the Danish krone and the U.S. dollar is 14 DKK =...
Suppose the exchange rate between the Danish krone and the U.S. dollar is 14 DKK = $1 and the exchange rate between the Chilean peso and the U.S. dollar is 220 CLP = $1. The exchange rate between the U.S. dollar and the Danish krone in terms of dollars per krone is $ (Round your response to four decimal places.) The exchange rate between the U.S. dollar and the Chilean peso in terms of dollars per peso is $ . (Round your response to four decimal places.) The exchange rate between the Danish krone and the Chilean peso is ID (Round your response to four decimal places.) The exchange rate between the Danish krone and the Chilean peso is DKK. (Round your response to four decimal places.) Suppose the exchange rate between the krone and the dollar changes to 12 DKK = $1 and the exchange rate between the peso and the dollar changes to 240 CLP = $1. In this case, the O A. U.S. dollar has depreciated against the Danish krone. O B. Chilean peso has appreciated against the U.S. dollar. OC. U.S. dollar has depreciated against the Chilean peso. O D. Chilean peso has appreciated against the Danish krone.
Answers
Given,
14 DKK = $1 => 1 DKK = $1/14 = $0.0714
Q1. Therefore, 1 DKK = $0.0714
220 CLP = $1 => 1 CLP = 1$1/220 = $0.0045
Q2. Therefore, 1 CLP = $0.0045
As we have, 1 DKK = $1/14 = 1/14 x 220 CLP = 15.7143 CLP
Q3. Therefore, 1 DKK = 15.7143 CLP
1 CLP = $1/220 = 1/220 x 14 DKK = 0.0636 DKK
Q4. Therefore, 1 CLP = 0.0636 DKK
Given that the changed exchange rates are 12 DKK = $1 and 240 CLP = $1
Since, 1 USD can purchase less DKK now, USD has depreciated against DKK. 1 USD can purchase higher DKK now. Hence, USD has appreciated against CLP
From the rule of transitivity, we have that if USD has depreciated against DKK and CLP has depreciated against USD, then CLP has depreciated against DKK (logical rule)
Hence, the correct option is A. U.S.dollar has depreciated against the Danish Krone
Similar Solved Questions
1 answers
A parking lot has 5 spots remaining and 5 different cars in line waiting to be parked
A parking lot has 5 spots remaining and 5 different cars in line waiting to be parked. If one of the cars is too big to fit in the two outermost spots, in how many different ways can the five cars be arranged?...
1 answers
4. Let Xi, , xn be a sample from N(μ, σ2). Use the distributions of sarnple...
4. Let Xi, , xn be a sample from N(μ, σ2). Use the distributions of sarnple mean X and sample variance s2 and Basu's theorem to show that sample mean and sample variance are independent....
1 answers
Suppose the risk free rate today is 5% and in the next year the Federal Reserve...
Suppose the risk free rate today is 5% and in the next year the Federal Reserve will either lower the rate to 4% or raise it to 6%. In the risk- neutral world assume each is likely to happen. Compute the price of a European put option on the 2-year bond with face value $100, where the option expires...
1 answers
. Assume the US can make 300 PCs if it uses all its resources or it...
. Assume the US can make 300 PCs if it uses all its resources or it can make 300 bushels of wheat. If the tradeoff is constant, calculate the opportunity cost of 1 PC. Then calculate the opportunity cost of 1 bushel of wheat....
1 answers
$48000 cost, $8000 down payment and so $40000 of loan and 6 years, 5%. How much...
$48000 cost, $8000 down payment and so $40000 of loan and 6 years, 5%. How much money you need to pay at the end? And there is a example 2 We were unable to transcribe this image...
1 answers
The following expenses all needed to be incurred by the relevant taxpayers to enable them to...
The following expenses all needed to be incurred by the relevant taxpayers to enable them to earn assessable income, but which one is deductible under s 8-1 ITAA97? Select one: a. Child minding expenses incurred to enable a parent to go to work. b. Travel expenses from home to work to enable the tax...
1 answers
Draw the shear and moment diagrams, then anwer the questions. The distance x is measured from...
Draw the shear and moment diagrams, then anwer the questions. The distance x is measured from point A to the right 360 Ib/ft 2.7 3.2' Questions: At x = 1.7 ft, V = 1145.06 At x 4.1 ft, V -148.27 M 464.96 lb, lb-ft M-TT570.826 lb, lb-ft...
1 answers
A system consists of the following masses loacted in the xy- plane: 5.5 kg at the...
A system consists of the following masses loacted in the xy- plane: 5.5 kg at the point (0,5), 7.0 kg at the point (3,8) and 5.0 at the point (-3, -6). Find the distance from the origin to the center of mass....
1 answers
Part A Consider the reaction 8H,8(E) + 40.() +8H2O(g) + S.() A[HS]/At -0.083 M/s You may...
Part A Consider the reaction 8H,8(E) + 40.() +8H2O(g) + S.() A[HS]/At -0.083 M/s You may want to reference (Pages 587 - 592) Section 14.3 while completing this problem. Find A[0l/A. Express your answer to two significant figures and include the appropriate units. .: O ? A[0]/At Value Units Submit Re...
1 answers
2. Forced vibrations with damping is described by the equation mu” (t) + yu (t) +...
2. Forced vibrations with damping is described by the equation mu” (t) + yu (t) + ku(t) = 3 cos(at). Rewrite this second-order equation as a first-order system....
2 answers
Charge Q coulombs at time t seconds is given by the differential equation: 0 C Q dt dQ R where C is the capacitance in farads and R is the resistance in ohms
Charge Q coulombs at time t seconds is given by the differential equation: 0CQdtdQR where C is the capacitance in farads and R is the resistance inohms. Solve the equation for Q given that Q=Q0 when t=0.A circuit possesses a resistance of 250kΩ and a capacitance of 8.5μF, a...
1 answers
(4) When an object is placed at a distance of 8 cm from a lens, the...
(4) When an object is placed at a distance of 8 cm from a lens, the magnification is -5. (a) What is the focal length of the lens? (b) If the object is placed at 10 cm from the same lens, what is the magnification of the image? <Real Virtual> (c) Characterize the image formed in (b) by I <n...
1 answers
Question Help Use technology and the given confidence level and sample data to find the confidence...
Question Help Use technology and the given confidence level and sample data to find the confidence interval for the population mean u. Assume that the population does not exhibit a normal distribution Weight lost on a diet 98% confidence n=61 x=4.0 kg s=5.9 kg What is the confidence interval for the...
4 answers
1- at 12 noon, leslie recorded the temperature as 56F
1- at 12 noon, leslie recorded the temperature as 56F. the temperature had increased by 8F from 10 A.M. the temperature at 8 A.M. was 2F warmer than it was at 10 A.M. what was the temperature at 8 A.M?MY Son write the answer is - 62F2- the temperature at 6 P.M. was 72F. this temperature was 8F less ...
1 answers
Please provide detailed steps GO ste: T.t IS n NCISTavyto pev.fo/m fin ste) ?
Please provide detailed steps GO ste: T.t IS n NCISTavyto pev.fo/m fin ste) ?...
1 answers
▼ Part A CH3CH2CH2 NH2 Br CH3 Spell out the full name of the compound. N-methy...
▼ Part A CH3CH2CH2 NH2 Br CH3 Spell out the full name of the compound. N-methy N-propylamoniu Submit Previous Answers Request Answer Incorrect; Try Again; 2 attempts remaining: no points deducted...
1 answers
Ales data for a line of tires it deals. m. (20) JR Tire Store reported the...
ales data for a line of tires it deals. m. (20) JR Tire Store reported the following October purchases and sales date he company uses a perpetual inventory system. 1) Prepare the company's inventory record using LIFO. se month. 3). Journalize the transactions 2) Identify cost of goods sold for t...