The following table provides nominal exchange rates for the U.S. dollar. Based on these data, the nominal exchange rate equals approximately ______ reals per Swiss franc or, equivalently, ______ Swiss francs per real.

Question

The following table provides nominal exchange rates for the U.S. dollar.  Based on these data, the nominal exchange rate equals approximately ______ reals per Swiss franc or, equivalently, ______ Swiss francs per real.

Quizplus · Accepted Answer

To find the nominal exchange rate in reals per franc, we must first find their values with respect to the U.S. dollar. The real is 1.821/dollar and the franc is 1.730/dollar, so the real to franc ratio is 1.821/1.730 = 1.053 reals/franc. The reciprocal, 1.730/1.821 = 0.950, is the rate of francs per real.

The Following Table Provides Nominal Exchange Rates for the U