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- Subject
- Foreign Exchangeeconomics-mcqs › foreign-exchange
- Published
- 1 Jun 2019
- Last updated
- 28 May 2026
If a television priced at 400 Swiss francs in Switzerland is sold for $200 in the United States, what is the exchange rate between the franc and the dollar?
Multiple choice question for Foreign Exchange. Select an option, then review the explanation below.
Explanation
Since the TV costs 400 francs in Switzerland and $200 in the US, dividing 400 francs by 200 dollars gives an exchange rate of 2 francs per dollar.
More Foreign Exchange MCQs
Practice related questions from the same subject.
- 1.In a floating exchange rate system, what is the typical trend observed regarding currency values?
- 2.What term describes the increase in the value of one currency compared to another?
- 3.What is the typical impact of a fiscal expansion in the UK on the value of the pound sterling?
- 4.What do we call exchange rates that fluctuate based solely on market supply and demand without government intervention?
- 5.What type of exchange rate system was established by the agreements made at the 1944 Bretton Woods conference?