Assessment 10: managing global financial issues

Complete two problems related to strategically managing global financial issues. The problems focus on currency appreciation and exchange rates.

Introduction

By successfully completing this assessment, you will demonstrate your proficiency in the course competencies through the following assessment scoring guide criteria:

• Competency 6: Strategically manage global financial environment.
  • Calculate currency appreciation rates.
  • Calculate cross rates in foreign currency.

Instructions

For this assessment, complete Problems 1–2, applying the necessary knowledge to strategically manage global financial issues. You may need an HP 10B II Business Calculator to complete the following problems. You may use Word or Excel to complete the assessments throughout this course, but you will find Excel to be most helpful for creating spreadsheets.

Problem 1: Currency Appreciation

Suppose that 1 Euro could be purchased in the foreign exchange market today for $0.25. If the Euro appreciated 10 percent tomorrow against the dollar, how many Euros would a dollar buy tomorrow?

Problem 2: Cross Rates

Assume the exchange rate between US dollar and Indian Rupee is 60 Rupees = $1, and the exchange rate between dollar and British pound is 1 Pound = $1.5. What is the exchange rate between the Rupee and pound?

Competencies Measured

By successfully completing this assessment, you will demonstrate your proficiency in the course competencies through the following assessment scoring guide criteria:

• Competency 6: Strategically manage global financial environment.
  • Calculate currency appreciation rates.
  • Calculate cross rates in foreign currency.