the nominal exchange rate is the price of one currency in terms of another currency. a nominal exchange rate specifies how many units of one country's currency are needed to buy one unit of another country's currency.
Suppose the following table forecasts nominal exchange rate data for March 16, 2016, in terms of U.S. dollars per unit of foreign currency. Use the information in the table to answer the questions that follow.
Cost of One Unit of Foreign Currency
Foreign Currency (Dollars)
Lithuanian Litas (LTL) 0.4755
Canadian Dollar (CAD) 0.8666
Euro (EUR) 1.2151
Japanese Yen (JPY) 0.0008538
Mexican Peso (MXN) 0.0942
United Kingdom Pound (GBP) 1.7552
1) Suppose that on March 16, 2016, an ornamental bookcase handmade in Germany is priced at 830 EUR. The approximate U.S. dollar price of the bookcase would be:
a) $683
b) $807
c) $908
d) $1.009
