Florin and Guilder are two countries separated by a narrow sea. They use currenc
ID: 1114055 • Letter: F
Question
Florin and Guilder are two countries separated by a narrow sea. They use currencies called, respectively, the Flop and the Gulp.
a. The nominal exchange rate is 0.5 Flops to one Gulp.
If a trader wanted to exchange 100 Gulps for Flops, how many Flops would she get?
.
b. Suppose a trader turns in 50 Gulps, and gets 150 Flops.
What is the nominal exchange rate?
Instructions: Round your answer to two decimal places.
c. Suppose the nominal exchange rate is 10 Flops/Gulp.
A Guilderian trader wants to buy a barrel of Florish turnips for 40 Flops.
How many Gulps must he convert to get that many Flops?
Instructions: Enter your answer as a whole number.
Explanation / Answer
a.
If a trader wanted to exchange 100 Gulps for Flops, how many Flops would she get
=100*0.5
=50 flops
b. Suppose a trader turns in 50 Gulps, and gets 150 Flops.
What is the nominal exchange rate=150/50
=3 flops to 1 gulp or 3 Flops/Gulp
c.
How many Gulps must he convert to get that many Flops=40/10=4 gulps
the above all are the answers
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