Consider the information about the economy of Pakistan. Note that the currency of Pakistan is the rupee. The government purchase
1 answer:
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Answer:
1 dollar = 1.5 peso
Explanation:
An exchange rate denotes the value of one currency in terms of another currency. Exchange rates can be of two kinds, spot rate and forward rate.
Spot rate is the rate quoted by bank for buying or selling foreign currency as on today.
Forward exchange rate on the other hand represents rate quoted by bank today for buying and selling foreign currency on a future date.
<u>Given </u>: 1 unit of peso = 12 grains of gold
1 unit of US Dollar = 18 gains of gold
<u>To find</u> : 1 peso = ___ dollars
1 grain of gold = peso
similarly, 1 grain of gold = dollars
this means,
it means 1 peso =
or 1 peso =
or 1 dollar = 1.5 pesos