# If1 British pound can beexchanged for 180centsof U.S. currency

Question # 00003684 Posted By: expert-mustang Updated on: 11/18/2013 07:10 AM Due on: 11/18/2013
Subject Accounting Topic Accounting Tutorials:
Question

If1 British pound can beexchanged for 180centsof U.S. currency, what fraction should beused to computethe indirect quotation of the exchangerate expressed in British pounds?

A.1/180

B.1/.56

C.1.8/1

D.1/1.8

2. Supposethe direct foreign exchangerates in U.S.dollars are:

1 Singaporedollar =\$.7025

1 Cyprus pound =\$2.5132

Based on theinformationgivenabove, the indirectexchangeratesforthe Singaporedollarand the

Cyprus Pound (fromaU.S. perspective)are:

A.1.7655 Singaporedollarsand 1.4235 Cyprus pounds respectively.

B.0.2975 Singaporedollarsand 1.5132 Cyprus pounds respectively. C.2.1622 Singaporedollarsand 0.4625 Cyprus pounds respectively.

D.1.4235 Singaporedollarsand 0.3979 Cyprus pounds respectively.

3. Supposethe direct foreignexchangerates in U.S.dollars are:

1 Singaporedollar =\$.7025

1 Cyprus pound =\$2.5132

Based on theinformation givenabove, how manyU.S. dollars must be paid for apurchaseof citrus fruits costing10,000 Cyprus pounds?

A.\$25,132

B.\$15,132

C.\$3,979

D.\$35,775

4. Supposethe direct foreign exchangerates in U.S.dollars are:

1 Singaporedollar =\$.7025

1 Cyprus pound =\$2.5132

Based on theinformation givenabove, how manySingaporedollars arerequired to purchasegoods costing10,000 US dollars?

A.7,025

B.14,235

C.17,655

D.2,975

5. Upon arrival in Chile, Karen exchanged \$1,000 ofU.S. currencyinto 480,000 Chilean Pesos. While returningafter her two month visit, she exchangedher remaining50,000 Pesos into \$100 of U.S. currency. What amount of gain or alossdid Karenexperienceon the 50,000 pesos sheheld duringher visit and converted to U.S. dollars at thedeparturedate?

A.Loss of \$4. B.Gain of \$4.

C.Loss of \$6.

D.No gain or loss.

6. Chicago based Corporation X has anumberof importingtransactions with companies based inUK.

Importingactivities resultin payables.If thesettlement currencyis the British Pound, which of the

followingwillhappen by changes in thedirect or indirect exchangerates?

A.Option A B.Option B C.Option C D.Option D

7. Chicago based Corporation X has anumberof exportingtransactions with companies based in Sweden.

Exportingactivities resultin receivables.If the settlement currencyis the Swedish Krona, which of the followingwillhappen by changes in thedirect or indirect exchangerates?

A.Option A B.Option B C. Option C D.Option D

8. Corporation X has anumber of exportingtransactions with companies based in Vietnam. Exporting activities resultin receivables.If thesettlement currencyis the US dollar, which of thefollowingwill happen bychanges in thedirect or indirect exchangerates?

A.Option A B.Option B C.Option C D.Option D

9. HeavyCompanysold metal scrap to aBrazilian companyfor 200,000Brazilian reais on December1,

20X8, with payment dueon January20, 20X9. The exchangerates were:

Based on theprecedinginformation, which ofthefollowingis trueof dollar's movement vis-à-vis

Brazilian real duringtheperiod?

A.Option A B.Option B C.Option C D.Option D

10. HeavyCompanysold metal scrap to aBrazilian companyfor 200,000Brazilian reais on December1,

20X8, with payment dueon January20, 20X9. The exchangerates were:

Based on theprecedinginformation, what is theHeavy's overallnetgainor net loss from its foreign currencyexposurerelated to this transaction?

A.\$4,860 loss

B.\$2,600 loss

C.\$9,018gain

D.\$2,260 gain

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1. ## Solution: 100% Correct Answers for ACC Ch-11 Problems

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