Asked by
Vincent Guisiner
on Dec 02, 2024
Verified
The direct and indirect quotes on the Swiss franc are 0.75 and 1.33, respectively. The direct and indirect quotes on Poland's zloty are 0.25 and 3.94, respectively. How many zloty will it cost a Polish merchant to purchase a watch priced at 270 Swiss francs.
A) 90 zloty
B) 154 zloty
C) 810 zloty
D) 2400 zloty
Swiss Franc
The official currency of Switzerland and Liechtenstein, known for its stability and often considered a "safe-haven" currency.
Polish Zloty
The currency of Poland, symbolized as PLN.
Direct Quotes
The exchange rate for foreign currencies quoted in units of the domestic currency per one unit of the foreign currency.
- Determine the volume of currency that can be bought or exchanged based on a specified exchange rate.
- Examine the financial repercussions resulting from exchange rate alterations in international trade transactions.
Verified Answer
ML
Learning Objectives
- Determine the volume of currency that can be bought or exchanged based on a specified exchange rate.
- Examine the financial repercussions resulting from exchange rate alterations in international trade transactions.