Question 1

Keiko arrived in Oshawa to study English at Durham College. She used travellers' cheques totalling ¥1,000,000 to open a Canadian dollar bank account. What will her opening balance be if the bank charges 0.5% for the currency conversion?

Accepted Answer

The answer of Keiko arrived in Oshawa to study English...

Question 2

Hamish and Grace MacDonald have been investigating the cost of a holiday in Britain. From their home in Welland, Ontario, it is equally inconvenient to fly out of Toronto or Buffalo, New York. On the Internet, they have found that they can fly Buffalo-London return on American Airlines for US$656 each, rent a hotel room in London for two people for one night at a cost of £87, and join Jolly Tours the next day for a two-week all-inclusive coach tour at a cost of £1,150 per person. Alternatively, the MacDonalds can purchase an all-inclusive package (including a similar coach tour) from a local travel agent for C$3,595 per person. Which alternative is cheaper? How much cheaper is it in C$ for two people?

Accepted Answer

The answer of Hamish and Grace MacDonald have been investigating...

Question 3

How much will it cost (in Canadian funds) to purchase £2,000 worth of traveller's cheques if the commission rate for this quantity of cheques is 0.5%?

Accepted Answer

The answer of How much will it cost (in Canadian...

Question 4

Before Mr. and Mrs. Percival left for Great Britain, they purchased British pounds at an exchange rate of C$1.5645 = £1.00. When they returned to Canada 8 weeks later they converted their remaining £242 back to Canadian currency at the rate of C$1.5862 = £1.00. How much did they gain or lose in Canadian dollars on the round-trip transaction involving the £242?

Accepted Answer

The answer of Before Mr. and Mrs. Percival left for...

Question 5

Based on the exchange rates in the above table, how many more British pounds can you obtain with C$2,000 at the Royal Bank than at the airport kiosk? On any currency exchange transaction, Airport Kiosk applies a C$3.50 service charge.
Refer To: 03-02

Accepted Answer

The answer of Based on the exchange rates in the...

Question 6

Kevin lives in Calgary and wants to buy a 2012 Corvette. The best price he can find for a low-mileage model in Alberta is $61,495. (No GST would be payable on this private sale.) Through autotrader.com he tracked down a comparable car in California that he can purchase for US$54,968. To bring the car into Canada, he will have to pay 5% GST on the purchase price at Canada Customs. Additional costs will be C$387 for airfare to San Diego, US$350 in special transaction and documentation costs, and US$550 in travel and accommodation costs while driving the vehicle back to Calgary. How much will he save (in C$) by buying the Corvette in California?

Accepted Answer

The answer of Kevin lives in Calgary and wants to...

Question 7

In April of 2011, Marielle bought 1,200 shares of Yakamura Trading Co. on the Tokyo Stock Exchange at a price of ¥1,150 per share. The exchange rate at the time was ¥99.50 per C$. She sold the stock for ¥1,310 per share in June of 2016 when the exchange rate was ¥96.96 per C$. In Canadian dollars, how much did Marielle gain or lose on the investment?

Accepted Answer

The answer of In April of 2011, Marielle bought 1,200...

Question 8

If the C$ weakens by 0.5% relative to the €, C$1.00 = €0.7448, what will be the new values for € per C$1.00 and C$ per €1.00?

Accepted Answer

The answer of If the C$ weakens by 0.5% relative...

Question 9

If the C$ appreciates (from the value C$1.5698 = £1.00) by C$0.0017 relative to the £, what will be the new value for £ per C$1.00?

Accepted Answer

The answer of If the C$ appreciates (from the value...

Question 10

If the number of £ per C$1.00 rises from 0.6370 to 0.6403, what will be the change in the C$ revenue from a foreign contract fixed at £23,000?

Accepted Answer

The answer of If the number of £ per C$1.00...

Question 11

The exchange rate between Currencies X and Y is currently Y0.05614 = X1.00. If X weakens by 1.5% relative to Y, what will be the new values for the exchanges rates per unit of X and per unit of Y?

Accepted Answer

The answer of The exchange rate between Currencies X and...

Question 12

The exchange rate between the US$ and the C$ declines from US$0.9993 to US$0.9846 per C$. What will be the change in the C$ price to an importer of a US$2,000 item?

Accepted Answer

The answer of The exchange rate between the US$ and...

Question 13

A steel company in Hamilton can purchase Alberta coal at C$105 per metric tonne (1,000 kg) or West Virginia coal at US$95 per ton (2,000 lb) (1 kg = 2.205 lb). How much cheaper in C$ per metric tonne is the less expensive source if US$0.975 = C$1.00?

Accepted Answer

The answer of A steel company in Hamilton can purchase...

Question 14

Based on the exchange rates in the above table, how many fewer Canadian dollars will you receive if you convert US$165 at the airport currency exchange kiosk instead of at the Royal Bank? On any currency exchange transaction, the airport currency exchange kiosk applies a C$3.50 service charge.
Refer To: 03-02

Accepted Answer

The answer of Based on the exchange rates in the...

Question 15

Using the exchange rates in Table 3.2, show that you will receive as many euros for C$1150 by first converting the dollars to pounds and then converting the pounds to euros, as you would by converting the dollars directly to euros.

Accepted Answer

The answer of Using the exchange rates in Table 3.2,...

Question 16

If the number of US$ per C$1.00 declines from 0.9721 to 0.9685, what will be the change in the C$ price per ounce of gold which a Canadian gold mine sells at the international price of US$1392 per ounce?

Accepted Answer

The answer of If the number of US$ per C$1.00...

Question 17

If the number of ¥ per C$1.00 declines from 97.561 to 95.445, what will be the change in the C$ price to an importer of a ¥195,000 item?

Accepted Answer

The answer of If the number of ¥ per C$1.00...

Question 18

Heinz returned from a holiday in Germany with €235. How much will he receive from his bank when he converts the currency back to Canadian dollars? The bank charges a 1.6% service charge for the transaction.

Accepted Answer

The answer of Heinz returned from a holiday in Germany...

Question 19

If the C$ strengthens by 1.2% relative to the US$ value, C$1.00 = US$0.9672, what will be the new values for US$ per C$1.00 and C$ per US$1.00?

Accepted Answer

The answer of If the C$ strengthens by 1.2% relative...

Question 20

A cross-border shopping trip reveals that milk sells for US$2.99 per one-gallon jug versus C$4.99 per four-litre jug in Canada. Calculate the percent difference between Canada and the United States in the exchange rate-adjusted price of milk. Use the Canadian price as the base in the comparison. (1 U.S. gallon = 3.785 litres).

Accepted Answer

The answer of A cross-border shopping trip reveals that milk...

Quiz 3: Ratios and Proportions