Asked by Jessa Gesta on Jun 03, 2024
Verified
If the C$ strengthens by 3% relative to the euro (C$1.00 = €0.7448) , what will be the new value for the euro per C$1.00?
A) €0.7671 per C$1.00
B) €0.7049 per C$1.00
C) €0.7429 per C$1.00
D) €0.4797 per C$1.00
E) €0.8107 per C$1.00
Strengthens
Becomes stronger or more forcefully effective.
C$
Currency symbol for the Canadian dollar, the official currency of Canada.
Euro
The official currency of the eurozone, which is used by 19 of the 27 European Union countries.
- Familiarize oneself with and quantify exchange rates in addition to understanding their consequences on currency strength.
Verified Answer
KA
Keara AwnaeJun 07, 2024
Final Answer :
A
Explanation :
If the C$ strengthens by 3% relative to the euro, it means that the euro will weaken by the same percentage against the C$. The new value can be calculated as €0.7448 + (3% of €0.7448) = €0.7448 + €0.0223 = €0.7671 per C$1.00.
Learning Objectives
- Familiarize oneself with and quantify exchange rates in addition to understanding their consequences on currency strength.