In January 1, 2002, there were 15 member countries in the European Union. Twelve of those countries eliminated their own individual currencies and began using a new common currency, the euro. For a three-year period from January 1, 1999, through December 31, 2001, these 12 countries priced goods and services in terms of both their own currencies and the euro. During that period, the value of their currencies was fixed against each other and against the euro. So during that time, the dollar had an exchange rate against each of these currencies and against the euro. The information in the following table shows the fixed exchange rates of four European currencies against the euro and their exchange rates against the U.S. dollar on March2, 2001. Use the information below to calculate the exchange rate between the dollar and the euro (in euros per dollar) on March 2, 2001.
|
Currency
|
Units per Euro (fixed)
|
Units per U.S. Dollar (as of March 2, 2001)
|
|
|
German mark
|
1.9558
|
2.0938
|
|
|
French franc
|
6.5596
|
7.0223
|
|
|
Italian lira
|
1,936.27
|
2,072.87
|
|
|
Portuguese escudo
|
200.482
|
214.63
|