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The Current Exchange Rate Between the Swiss Franc and the U.S

Question 3

Multiple Choice

The current exchange rate between the Swiss franc and the U.S. dollar is $0.9107/S.F. If a pair of jeans costs $50.00 in the U.S. and purchasing power parity holds, what would you expect
This same pair of jeans to sell for in Switzerland?


A) S.F. 54.90
B) S.F. 49.09
C) S.F. 45.54
D) This cannot be answered without knowing the inflation rates for each country.

Correct Answer:

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