Money’s Dual Nature and Exchange Rates (Quiz)

Money:

Different currencies are being used for each nation

Each currency has price like any other item, only in currencies their price is mentioned in a different currency

In an FX transaction you perform two transactions at once one the one hand you are being the currency you are getting on the other you are selling the currency you are disposing

The relationship of how many currencies can be described in a single exchange rate?

On the left hand side of a currency pair we have the:

Please define the Base currency for each pair

The base currency is to be denominated in one single unit of the currency mentioned at the left hand side of the exchange pair

The value depicted in the exchange rate mentions how much money you buy of the fluctuating currency with a single unit of the base currency.

Assuming that the exchange rate of EUR/USD is at 1.0550, how many USD can I buy with €1000

Assuming that the exchange rate of GBP/JPY is at 160.27, how many USD can I buy with £1000

Assuming that the exchange rate of USD/CAD is at 1.2955, how many CAD can I buy with US$300

Let’s assume that at the end of past year the exchange rate of the EUR/GBP was at 0.8944, while today it is at 0.8540. That would mean that:

Let’s assume that at the end of past month the exchange rate of the EUR/USD closed at 1.0734, while today it is at 1.0428. That would mean that:

Let’s assume that at the beginning of last week AUD/USD opened at 0.6947 and it closed the week at 0.6928. That would mean that: