You Have Observed the Following Movements in Exchange Rates Between

question 41

Multiple Choice

You have observed the following movements in exchange rates between the Australian dollar and the US Dollar:
Which one of the following statements is correct given this information?

• A)You would have made a profit if you invested US$1000 in Australian dollars last week and then converted your money back to US dollars this week.Ignore any interest earnings.
• B)The Australian dollar depreciated from last week to this week.
• C)This week you can exchange one Australian dollar for $1.2077 US.
• D)It is cheaper for an American to travel in Australia this week as compared to last week.
• E)Last week,it took AUD$0.8078 to purchase US$1.

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