The following table provides nominal exchange rates for the U.S. dollar. $$\begin{array} { | c | c | c | }
\hline \text { Cauntry } & \text { Fareign currency/dallar } & \text { Dollar/iareimn currency } \
\hline \text { Carlada (Carudiar dollar) } & 1.488 & 0.672 \
\hline \text { Mexico (peso) } & 9.259 & 0.108 \
\hline
\end{array}$$
Based on these data, the nominal exchange rate equals approximately ________ pesos per Canadian dollar or, equivalently, ________ Canadian dollars per peso.
A)0.672; 1.488
B)9.259; 0.108
C)6.222; 0.161
D)7.771; 0.129

Question

The following table provides nominal exchange rates for the U.S. dollar. $$\begin{array} { | c | c | c | } 
\hline \text { Cauntry } & \text { Fareign currency/dallar } & \text { Dollar/iareimn currency } \
\hline \text { Carlada (Carudiar dollar) } & 1.488 & 0.672 \
\hline \text { Mexico (peso) } & 9.259 & 0.108 \
\hline
\end{array}$$  
Based on these data, the nominal exchange rate equals approximately ________ pesos per Canadian dollar or, equivalently, ________ Canadian dollars per peso.
A)0.672; 1.488
B)9.259; 0.108
C)6.222; 0.161
D)7.771; 0.129

Quizplus · Accepted Answer

To find the exchange rate between the Canadian dollar and the Mexican peso, divide the exchange rate of the peso per dollar by the exchange rate of the Canadian dollar per dollar. This gives $9.259 / 1.488 = 6.222$ pesos per Canadian dollar. For the reverse, divide the exchange rate of the Canadian dollar per dollar by the exchange rate of the peso per dollar, which gives $0.672 / 4.259 = 0.161$ Canadian dollars per peso.

The Following Table Provides Nominal Exchange Rates for the U