Suppose one British pound can purchase 2.12 US dollars today in the foreign exchange market,and currency forecasters predict that the US dollar will depreciate by 22.0% against the pound over the next 30 days.How many dollars will a pound buy in 30 days?

Question

Quizplus · Accepted Answer

If the US dollar depreciates by 22.0% against the pound, it means the pound will increase in value by the same percentage relative to the dollar. The new value can be calculated as 2.12 * (1 + 22.0%) = 2.12 * 1.22 = 2.5864, which rounds to 2.59, making option A correct.

Suppose One British Pound Can Purchase 2