The chart below shows an exchange rate table.

\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}

Which statement accurately interprets the information on the chart?

A. Japan's currency shows that it has the strongest economy of any country.
B. The value of each currency is shown in relation to the US dollar.
C. It would take six British pounds to purchase one US dollar.
D. Swiss francs are the strongest currency in Europe.



Answer :

Let's carefully analyze each statement in relation to the provided exchange rate table and determine their correctness one by one.

1. Japan's currency shows that it has the strongest economy of any country.

- Exchange rate for Japanese Yen (JPY) to 1 US Dollar (USD) is 96.1503.
- A higher exchange rate indicates that one needs a larger number of Japanese Yen to purchase 1 USD, which alone does not necessarily imply the strength of the Japanese economy.
- Strongest economy cannot directly be inferred from the exchange rate itself as various factors like GDP, inflation rate, etc., play roles in determining the strength of an economy.

Therefore, the statement is False.

2. The value of each currency is shown in relation to the US dollar.

- The exchange rates provided in the table are all in relation to 1 US Dollar (USD). This means the value indicates how much of each currency is equivalent to 1 USD.
- For instance, 1 USD = 1.0278 Canadian dollars, 0.9508 Swiss francs, etc.

Therefore, the statement is True.

3. It would take six British pounds to purchase one US dollar.

- The exchange rate for the British Pound (GBP) to 1 US Dollar (USD) is 0.6706.
- This indicates that 1 USD is equivalent to 0.6706 British pounds.
- If 1 USD = 0.6706 GBP, then clearly it does not take 6 British pounds to buy 1 USD.

Therefore, the statement is False.

4. Swiss francs are the strongest currency in Europe.

- The provided data shows the exchange rate of 1 USD = 0.9508 Swiss francs and 1 USD = 0.7689 Euro.
- Consequently, 1 Swiss franc is stronger than 1 Euro since one needs fewer Swiss francs than Euros to buy 1 USD.
- However, without additional information comparing other European currencies not listed in the table, we cannot conclude that Swiss francs are the absolute strongest currency in Europe.

Therefore, the statement is False.

Combining these interpretations, we conclude:
```
(False, True, False, False)