On January 25,2009,one U.S.dollar traded on the foreign exchange market for about 1.15 Swiss francs.Therefore,one Swiss franc would have purchased about ________ U.S.dollars.

Question

Quizplus · Accepted Answer

If one U.S. dollar trades for 1.15 Swiss francs, then one Swiss franc would only be able to purchase a fraction of a U.S. dollar. To determine this fraction, we can use a reciprocal: 1 divided by 1.15, which is approximately 0.87. Therefore, one Swiss franc would have purchased about 0.87 U.S. dollars.