The following table provides nominal exchange rates for the U.S.dollar. $$\begin{array} { l c c }
\underline { \text { Country }} &\underline { \text { Foreign currency/dollar }} & \underline { \text { Dollar/foreign currency } }\
\text { Canada (Canadian dollar) } & 1.488 & .672 \
\text { Mexico (peso) } & 9.259 & .108
\end{array}$$
Based on these data,the nominal exchange rate equals approximately ______ pesos per Canadian dollar or,equivalently,______ Canadian dollars per peso.

Question

The following table provides nominal exchange rates for the U.S.dollar. $$\begin{array} { l c c } 
\underline { \text { Country }} &\underline {  \text { Foreign currency/dollar }} & \underline { \text { Dollar/foreign currency } }\
\text { Canada (Canadian dollar) } & 1.488 & .672 \
\text { Mexico (peso) } & 9.259 & .108
\end{array}$$
Based on these data,the nominal exchange rate equals approximately ______ pesos per Canadian dollar or,equivalently,______ Canadian dollars per peso.

Quizplus · Accepted Answer

To find the nominal exchange rate between two currencies, we simply divide the foreign currency/dollar rate by the dollar/foreign currency rate.

For Canadian dollar:

Nominal exchange rate = Foreign currency/dollar rate ÷ Dollar/foreign currency rate 
Nominal exchange rate = 1.488 ÷ 0.672 
Nominal exchange rate = 2.222 pesos per Canadian dollar or equivalently, 0.45 Canadian dollars per peso

For Mexican peso:

Nominal exchange rate = Foreign currency/dollar rate ÷ Dollar/foreign currency rate 
Nominal exchange rate = 9.259 ÷ 0.108 
Nominal exchange rate = 85.648 pesos per dollar or equivalently, 0.012 dollar per peso

Therefore, the answer is C) 6.222;0.161.

The Following Table Provides Nominal Exchange Rates for the U