A marine biologist is planning to move from Sydney, Australia to San Francisco. She has $5,000 Australian dollars (AUD) to make the move. In the summer of 2006, the exchange rate of USD/AUD is 0.765, and the USD is rising against the AUD. If the rising dollar trend continues, and all other economic elements remain equal, will her AUD be worth more USD now or later? Explain.

Answers

Answer 1

Answer:

Now, if takes 0.765 USD to be equal 1 AUD. when the dollar increases, it will take fewer dollars to equal 1 AUD. for instance, it takes 0.5 dollars per 1 AUD. The conversion will change to:5,000 AUD * (0.5 USD/AUD)

5,000 * 0.5

= $2,500

so, her AUD will be worth more now.

Explanation:

Solution

Given that:

Her present  $5,000 AUD is worth $3,825 USD.

Then

5,000 AUD * (0.765 USD/AUD)

5,000 * 0.765

= $3,825

So,

If the USD dollar increases against the AUD, then, the ratio will reduce.

For example, it takes 0.765 USD to be equal 1 AUD. when the dollar increases, it will take fewer dollars to equal 1 AUD. for instance, it takes 0.5 dollars per 1 AUD. The conversion will change to:

5,000 AUD * (0.5 USD/AUD)

5,000 * 0.5

= $2,500

Therefore, her AUD will be worth more now.


Related Questions

Why is consumer spending the most essential element toward reversing a recession/depression?

Answers

Because the more money consumers spend the more that goes back into the economy
Other Questions
which linear function has the steepest slope? The base of a triangular prism has a base of 5 cm and a height of 8 cm. The prism itself has a height of 7 cm. What is its volume? what percent of bolivia is catholic? What is 7-5 pls help Thanks to an accident on 316, Ms. Montgomery had to buy a new car this summer. At the time of purchase, she was required to pay a taxon the vehicle and the tax was assessed based on the price of the vehicle.(48b-2) Which type of tax is BEST described in this scenario?A ExciseB. FranchiseC Ad VelorumD. Regulatory Fees On January 2, 2021, Sunland Company issued at par $9900 of 5% bonds convertible in total into 1000 shares of Sunland's common stock. No bonds were converted during 2021. Throughout 2021, Sunland had 1000 shares of common stock outstanding. Sunland's 2021 net income was $4500, and its income tax rate is 25%. No potentially dilutive securities other than the convertible bonds were outstanding during 2021. Sunland's diluted earnings per share for 2021 would be (rounded to the nearest penny) _____. Background information: This is a paraphrased excerpt What is the main idea of the passage?from a speech given by Fidel Castro entitled "SecondDeclaration of Havana."A few strong nations held economic and politicalpower in the global world.What is the history of Cuba but the history of LatinAmerica? What is the history of Latin America but theCuba needed to develop a capitalist economy.history of Asia, Africa, and the islands of the PacificPeople had to work for the ruling class in a capitalistOcean? What is the history of the peoples of these landseconomy.but one of cruel exploitation by the imperialist world? Atthe end of the previous century and at the beginning of A few economically dependent countries werethe current one, a small group of nations that werestrong enough to rule other territories.economically developed split up the world amongthemselves, forcing their economic and politicaldomination on two-thirds of the world's population.People had to work for the ruling classes among thenations that had set up a developed capitalist economy.Fidel Castro, 1962 Which weather event is typically brief, contains very strong winds, and leaves a path of destruction up to 50 miles long?a cyclonea hurricanea thunderstorma tornado Which statements about the ellipse are true? Check all that apply.The center is located at (2, 1).The major axis is 8 units long.The minor axis is 3 units long.The vertices are 4 units above and below the center.The foci are 7 units above and below the center.The foci are located along a horizontal line. Western Electric has 26,500 shares of common stock outstanding at a price per share of $68 and a rate of return of 13.55 percent. The firm has 6,750 shares of 6.70 percent preferred stock outstanding at a price of $89.50 per share. The preferred stock has a par value of $100. The outstanding debt has a total face value of $371,000 and currently sells for 105.5 percent of face. The yield to maturity on the debt is 7.75 percent. What is the firm's weighted average cost of capital if the tax rate is 39 percent? _______ refers to a group of symptoms that affect social and thinking abilities so severely that everyday functioning is affected. It includes problems with at least two brain functions (e.g., memory loss and language) and an inability to perform some activities of daily living Check all of the ordered pairs that satisfy the equation below.y = 7xA. (6,42)B. (42,6)C. (42,7)D. (12, 84)E. (84, 12)F. (84, 14) Park Street, Scott Street, and Oak Street form a triangle. If the angle formed by Oak Street and Park Street is 62 and the angle formed by Park Street and Scott Street is 58, which lists the sides of the triangle from least to greatest? Which formula is used to calculate the standard deviation of sample data? This image shows a public service announcement.What is the purpose of this PSA?A. to convince kids that the flu is not as good as popcornB. to convince people that popcorn is delicious andnutritiousC.to convince teachers to wash children's handsD. to convince parents to give children the flu vaccine Consider the system of equations represented in thegraph.y-x = 2x + y = 4Which is a solution to the system of equations? 1. (1.3) 2. (2.2) 3. (3, 1) 4. (4,2)ONLY ONE ANSWER PART A: Which statement best summarizes a central idea of the speech? [RI.2] A What is a antonym for remission can someone help me please A cell phone company is offering a special deal. If you choose from payment plans A, B, and C and one of four different phones, you can choose a free gift of a case, a car charger, or a memory card. What is the probability that Rusty will choose plan A, phone 2, and the car charger? (Find the sample space) *A) 1/9B) 1/18 C) 3D) 1/36 Steam Workshop Downloader