Exchange Rate Calculation Example

What is the exchange rate between dollars and euros on June 30, 2015?

a) $1.115 per euro

b) €1.115 per dollar

c) €1.235 per dollar

d) €0.805 per dollar

Answer:

The correct exchange rate between dollars and euros on June 30, 2015, is:

b) €1.115 per dollar

The given exchange rate of $1.115 per euro translates to €1.115 per dollar on June 30, 2015. This indicates the value of one euro in terms of dollars based on the exchange rate provided.

Exchange rates play a crucial role in international finance and trade, determining the relative value of one currency compared to another. They impact cross-border transactions, investments, and the overall dynamics of the global economy.

Fluctuations in exchange rates are influenced by various factors including supply and demand dynamics, economic conditions, geopolitical events, and central bank policies. Understanding exchange rates is essential for businesses, investors, and individuals involved in international transactions.

Therefore, the correct exchange rate on June 30, 2015, is b) €1.115 per dollar.