1-Suppose the exchange rate is €.8255/$. From the perspective of a European currency trader, is this a direct exchange rate or an indirect exchange rate?
2-Suppose the exchange rate at the start of the year was $1.6105/£. Since the start of the year the pound has depreciated 4%. What is today’s exchange rate? (Keeping the USD as the terms currency and the GBP as the base currency)
3-Suppose the exchange rate at the start of the year was $1.6105/£. Since the start of the year the dollar has appreciated 9%. What is today’s exchange rate? (Keeping the USD as the terms currency and the GBP as the base currency)
4-If the U.S. dollar appreciates relative to the MXN (Mexican peso), the dollar cost to a U.S. firm that buys products produced in Mexico and pays in MXN will ______________. (Answer either rise or fall)