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1 Dealer A quotes 1
1 Dealer A quotes 1.7652/1.7672 for the AUD/USD exchange rate to Dealer B. The price (in U.S. dollars) at which B can buy one unit of the Australian dollar is: O 0.5659 O 0.5665 O 1.7652 1.7672
2
The AUD/USD exchange rate fell from 1.9585 to 1.7662. Calculate the percentage change in the Australian dollar against the U.S. dollar. 0 -9.82% 0 - 10.89% O +10.89% +9.82%
3
The gift house offers credit to its customers and charges interes of 1.52 percent per month. What is the anuual percentage rate?
Expert Solution
1 AUD/USD Quote = 1.7652 / 1.7672
USD/AUD Indirect Quote = 1/1.7652 / 1/1.7652
= 0.5659 / 0.5665
The price at which dealer buys AUD using USD is 0.5659
The price at which dealer Sells AUD using USD is 0.5665
Therefore the dealer B can buy AUD using USD is 0.5665 (i.e., selling rate by dealer A)
Option 2 has to be slected
2
If we have to calculate the percentage of Change in AUD, we should know the USD rates per AUD.
Therefore, USD/ AUD (exchange rate 1) = 1 / 1.9585 = 0.5106
USD/ AUD (exchange rate 2) = 1 / 1.7662 = 0.5562
Therefore, appreciation in AUD against USD is = (0.5562 - 0.51060 / 0.5106 = 0.0556/ 0.5106 = 10.88%.
Option C is the correct answer.
3
We see that the annual percentage rate is given as=monthly rate*12=1.52%*12=18.2400%
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