Exchange Rate Calculation Quiz

What is an exchange rate?

• The price of one currency determined by the stock market

• The price of one currency determined by the government

• The price of one currency expressed in terms of the same currency

• The price of one currency expressed in terms of another currency

What does the exchange rate determine?

• How much of one currency you have to give away to get the same currency

• How much of one currency you have to keep to get a specific amount of another currency

• How much of one currency you have to give away to get a specific amount of another currency

• How much of one currency you have to exchange for the same currency

How does the exchange rate influence the selling price of exports from the UK in international markets?

• It decreases the selling price

• It increases the selling price

• It determines the affordability of exports

• It has no influence on the selling price

What is the pound-to-dollar exchange rate if one pound equals 1.45 US dollars?

• 1 pound equals 1.45 US dollars

• 1 pound equals 1.50 US dollars

• 1 pound equals 1.40 US dollars

• 1 pound equals 1.55 US dollars

What is the pound cost of 20,000 US dollars if the exchange rate is 1 pound equals 1.45 US dollars?

• 14,500 pounds

• 14,000 pounds

• 13,793 pounds

• 13,000 pounds

What is the effect of a weaker pound compared to the euro on the value of sales in pounds?

• The value of sales decreases

• The value of sales increases

• The effect is unpredictable

• The value of sales remains the same

What happens to the value of sales in pounds if the pound strengthens against the euro?

• The effect is unpredictable

• The value of sales remains the same

• The value of sales decreases

• The value of sales increases

What is the pound value of 100,000 euros if the exchange rate is 1 pound equals 1.25 euros?

• 85,000 pounds

• 70,000 pounds

• 90,000 pounds

• 80,000 pounds

What is the pound value of 100,000 euros if the exchange rate is 1 pound equals 1.10 euros?

• 100,000 pounds

• 110,000 pounds

• 90,000 pounds

• 80,000 pounds

What is the pound value of 100,000 euros if the exchange rate is 1 pound equals 1.40 euros?

• 90,000 pounds

• 80,000 pounds

• 70,000 pounds

• 60,000 pounds