To determine which statement accurately interprets the information on the given exchange rate chart, let's carefully analyze each statement in relation to the data provided:
1. Japan's currency shows that it has the strongest economy of any country.
- The exchange rate for Japanese yen is 96.1503. This means 96.1503 Japanese yen are equivalent to 1 US dollar. A higher numerical value indicates that more of the currency is needed to equal one US dollar, which does not necessarily indicate the strength of the economy. Therefore, this statement is not an accurate interpretation of the chart.
2. The value of each currency is shown in relation to the US dollar.
- The chart provides the exchange rates as the amount of each foreign currency equivalent to 1 US dollar. For example, 1.0278 Canadian dollars equals 1 US dollar, and 0.7689 Euros equals 1 US dollar. This statement correctly describes the information presented in the chart, as the exchange rates are given in comparison to the US dollar.
3. It would take six British pounds to purchase one US dollar.
- The exchange rate for the British pound is 0.6706. This means that 0.6706 British pounds equal 1 US dollar. Six British pounds would equal far more than one US dollar. Therefore, this statement is inaccurate.
4. Swiss francs are the strongest currency in Europe.
- The exchange rate for the Swiss franc is 0.9508. To determine the "strength" of a currency, we look for the currency with the lowest exchange rate (the least amount of that currency equals one US dollar). The Euro has a lower exchange rate (0.7689) compared to the Swiss franc (0.9508). Hence, this statement is also incorrect.
Given this analysis, the statement that accurately interprets the information on the chart is:
The value of each currency is shown in relation to the US dollar.
