Assignment:
1. Mexican average daily wages grew from 129 Mexican pesos (MXN) in February 2000 to 349 MXN in February 2018.
(a) Find the average growth rate of the average daily wage (applying annual compounding, i.e., assuming the same growth rate for every year of the 18-year period).
(b) If the exchange rate is 1 USD = 18.2 MXN, what is the 2018 Mexican average daily wage in US dollars?
2. Using the following data for a given year, compute:
|
Item
|
Value
|
|
Rise in foreign financial assets in the country
|
451
|
|
Transfers, net
|
29
|
|
Imports of merchandise
|
751
|
|
Rise in country's financial assets abroad
|
297
|
|
Investment income payments
|
94
|
|
Imports of services
|
399
|
|
Investment income receipts
|
88
|
|
Exports of services
|
471
|
|
Exports of merchandise
|
505
|
(a) The current account balance.
(b) The financial account balance.
3. A wool sweater costs £154 in London, UK. The US dollar to UK pound exchange rate is 1 USD = 0.71 GBP. Based on the rule of one price, what would it sell for in NYC?
4. Given the April 28, 2017 exchange rates for the Indian rupee to Japanese yen 1 INR = 1.73 JPY and the Malaysian ringgit to Japanese yen 1 MYR = 25.69 JPY, calculate the exchange rate in Malaysian ringgitsper Indian rupee.