If two nominal exchange rates are given as 4 shekel/dollar and 0.711 dinar/dollar, so 1 dollar can buy either 4 shekels or 0.711 dinars, then each Jordanian dinar is worth ________ Israeli shekels, and each shekel is worth ________ dinars.
A)0.51; 1.96
B)1.96; 0.51
C)0.178; 5.623
D)5.623; 0.178

Question

Quizplus · Accepted Answer

The nominal exchange rates are 4 shekel/dollar and 0.711 dinar/dollar. By dividing 4 by 0.711 we obtain 5.623, which is the number of shekels per each dinar. If instead dividing 0.711 by 4 we obtain 0.178, which is the number of dinars per shekel.

If Two Nominal Exchange Rates Are Given as 4 Shekel/dollar