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FIU/BPMEZ International Finance

EXAMPLE SERIES NO. 1
QUOTATION OF FOREIGN EXCHANGE RATES
1. The dealer quotes the USD/EUR exchange rate at 1.1612 / 1.1668 on the foreign
exchange rate. What does this quotation mean and at what price will the client buy EUR?

2. Compare the current exchange rates of the Czech commercial banks and choose which
bank you would buy EUR from and which bank you would sell EUR against CZK. We
abstract any fees charged by commercial banks. For comparison, use:
https://www.kurzy.cz/kurzy-men/kurzovni-listek/

3. Compare foreign exchange and currency exchange rates on the comparison tool To
compare, use: https://www.kurzy.cz/kurzy-men/kurzovni-listek/ . What is the rule of
thumb?

4. The exchange rate of the dollar in the base and current periods is specified. Calculate the
exchange rate of the crown in both periods as well as the percentage change in the
exchange rate. Decide which currency has strengthened and which has weakened.
E0 = 22,28 CZK/USD
E1 = 21,94 CZK/USD

5. The bank's dealer quotes the following US dollar rates. Calculate the mid-rate and find the
spread as a percentage.

this

FIU/BPMEZ International Finance

CHF/USD

0,9538

0,9582

6. Use the exchange rate comparator https://www.kurzy.cz/kurzy-men/kurzovni-listek/ to
find the CZK/GBP exchange rates valid for Moneta banka and Komerční banka for the
current day and calculate the mid-rate and the spread in percentage terms. Which bank
has the higher spread? Compare the calculated mid-rates with the rate announced by the
CNB.

7. The Bank quotes the following buying and selling rates for DKK. Calculate the bid and ask
rates for USD.
USD/DKK

0,1695

0,1703

8. The Bank quotes the following rates. Calculate the spot rate for the PHP/GBP currency
pair by calculating the cross rate.
USD/GBP
PHP/USD

1,2960
65,395

1,2970
65,409

9. The Bank quotes the following rates. Calculate the spot rate for the CZK/PLN currency pair
by calculating the cross rate.
PLN/USD
CZK/USD

3,3875
22,315 22,345

3,4115

FIU/BPMEZ International Finance