Question

exchange rate tables
for this table, the reference currency is the euro
the exchange rate of the euro to the us dollar and most other currencies is determined by
currency | exchange rate april 3, 2013 (euro = 1)
bulgarian lev | 1.96
canadian dollar | 1.301
swiss franc | 1.2149
british pound | 0.8482
japanese yen | 119.4065
us dollar | 1.2839
dropdown options: supply and demand, government laws
question about how many swiss francs one euro buys, and how many us dollars to buy one euro

Explanation:

Step1: Determine the factor affecting exchange rates

In general, the exchange rate of a currency (like the euro to the US dollar and others here) is determined by the forces of supply and demand in the foreign exchange market. Government laws are not the primary determinant of floating exchange rates (which most major currencies follow), while supply and demand is the fundamental driver. So the first blank (determinant) is "supply and demand".

Step2: Find the exchange rate for Swiss francs per euro

From the table, the exchange rate for Swiss franc (with euro = 1) is given as 1.2149. This means 1 euro would buy 1.2149 Swiss francs.

Step3: Find the US dollars to buy one euro

From the table, the exchange rate for US Dollar (with euro = 1) is 1.2839. So it takes 1.2839 US dollars to buy one euro.

Answer:

• The determinant of exchange rates: supply and demand
• Swiss francs per euro: 1.2149
• US dollars per euro: 1.2839