Let's analyze the given exchange rate table step by step:
[tex]\[
\begin{tabular}{|c|c|}
\hline Currency & \begin{tabular}{c}
Exchange Rate \\
March 12, 2013 \\
(US dollar =1)
\end{tabular} \\
\hline Canadian dollar & 1.0278 \\
\hline Swiss franc & 0.9508 \\
\hline Euro & 0.7689 \\
\hline British pound & 0.6706 \\
\hline Japanese yen & 96.1503 \\
\hline
\end{tabular}
\][/tex]
To accurately interpret this chart, we need to understand what each value represents.
Each value shows how much of the foreign currency is equivalent to 1 US dollar.
1. Japan's currency shows that it has the strongest economy of any country.
- This statement is not necessarily true. The exchange rate tells us how much of a currency is equivalent to 1 US dollar, but it does not directly indicate the strength of an economy. While the Japanese yen has a high number (96.1503), this means that 1 US dollar is equal to 96.1503 Japanese yen, not necessarily the strength of the economy.
2. The value of each currency is shown in relation to the US dollar.
- This is correct. Each value listed in the exchange rate table shows the rate of exchange for that currency against 1 US dollar.
3. It would take six British pounds to purchase one US dollar.
- This statement is incorrect. The exchange rate for the British pound is 0.6706, which means that 0.6706 British pounds are equivalent to 1 US dollar. To find how many British pounds are needed to purchase 1 US dollar, the value is [tex]\( \frac{1}{0.6706} \approx 1.491 \)[/tex], not six.
4. Swiss francs are the strongest currency in Europe.
- This statement isn't directly derived from the exchange rate alone. The table shows that 0.9508 Swiss francs are equivalent to 1 US dollar, whereas 0.7689 Euros and 0.6706 British pounds are equivalent to 1 US dollar. This just indicates the exchange rates relative to the US dollar, rather than directly comparing the strength of these European currencies among themselves.
Conclusion: The statement that accurately interprets the information on the chart is:
- "The value of each currency is shown in relation to the US dollar."
