The following table provides nominal exchange rates for the U.S.dollar. $$\begin{array} { l c c }
\underline { \text { Country } } & \underline { \text { Foreign currency/dollar } }&\underline { \text { Dollar/foreign currency } }\
\text { Poland (zloty) } & 4.367 & .229 \
\text { South Africa (rand) } & 6.944 & .144
\end{array}$$
Based on these data,the nominal exchange rate equals approximately ______ zloty per South African rand or,equivalently,______ rand per Polish zloty.

Question

The following table provides nominal exchange rates for the U.S.dollar. $$\begin{array} { l c c } 
\underline { \text { Country } } & \underline { \text { Foreign currency/dollar } }&\underline {  \text { Dollar/foreign currency } }\
 \text { Poland (zloty) } & 4.367 & .229 \
\text { South Africa (rand) } & 6.944 & .144
\end{array}$$
Based on these data,the nominal exchange rate equals approximately ______ zloty per South African rand or,equivalently,______ rand per Polish zloty.

Quizplus · Accepted Answer

To find the exchange rate between zloty and rand, we need to divide the zloty/dollar rate by the rand/dollar rate:

$\dfrac {4.367 \ 	ext{zloty/dollar}}{6.944 \ 	ext{rand/dollar}} \approx 0.629 \ 	ext{rand/zloty}$

Alternatively, we could invert the exchange rates and get the same answer:

$\dfrac {1}{4.367 \ 	ext{zloty/dollar}} 	imes 6.944 \ 	ext{rand/dollar} \approx 0.629 \ 	ext{rand/zloty}$

Either way, we get that the exchange rate is approximately 0.629 rand per zloty, so the answer is B.

The Following Table Provides Nominal Exchange Rates for the U