FIN 582 Exam 1 (Unit 1,2,3,4) Exam Questions and Answers (Latest Update 2025) Verified Answers
I: Suppose the exchange rate is $1.3902/€. Convert $571 into
EUR. What is the equivalent Euro amount to $571? (correct to the nearest $.01 or "penny") - Correct Answers ✅*When you convert one currency into another, the currency symbols have to cancel out!
- = $571*(C1/C2)
- = $571*($1.3902/€)
- *The $ symbols must cancel out!
- = $571*(€/$1.3902)
- *Assume you are multiplying by one
- = $571*(1/$1.3902)
= €410.73
J: Suppose the exchange rate is €.8544/$. What is the
equivalent dollar amount to €75? (correct to the nearest .01)
- Correct Answers ✅$87.78
K: Suppose the exchange rate is €.8544/$. What is the
equivalent Euro amount to $156.20? (correct to the nearest .01) - Correct Answers ✅$156.20^(C1/C2)=€
- *The dollars have to cancel out
- $156.20^(€.8544/$) 1 / 3
FIN 582 Exam 1 (Unit 1,2,3,4) Exam Questions and Answers (Latest Update 2025) Verified Answers
- =€133.46
- If you can exchange €822 for $1,026, what must be the
exchange rate? (put your answer in terms of $/€ and correct to 4 decimal places - such as $1.3211/€) - Correct Answers
✅$1.2482/€
K: €.7525/$
- What is the equivalent $ amount to €815?
- What is the equivalent € amount to $255.25? - Correct
Answers ✅1. €815 * (1/.7525)
= $1083.06
2. = $255.25 * (€.7525/$)
= €192.08
What are direct and indirect exchange rates? - Correct
Answers ✅All Direct Exchange rates: Home currency
amount per one unit of foreign currency.
(HC)/(FC) 2 / 3
FIN 582 Exam 1 (Unit 1,2,3,4) Exam Questions and Answers (Latest Update 2025) Verified Answers
All Indirect Exchange rates: Foreign Currency of one unit of
home currency.
(FC)/(HC)
• Direct exchange rate - Correct Answers ✅• Direct exchange rate The amount of your currency that is equivalent to ONE unit of foreign currency.
Example: It takes $1.46 to purchase one Euro.
Usually written in the form $1.46/€ the € is called the "base" currency (the per one unit currency, the second currency listed) the USD (U.S. dollar) is called the "terms" currency Represents the dollar equivalent of €1
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