The Deutschemark is currently selling for .72 U.S. dollars and also for .87 Canadian dollars. If you determined the rate of exchange between U.S. and Canadian dollars from this information you would have calculated:

Question

Quizplus · Accepted Answer

The cross rate is calculated by taking the rate of exchange between two currencies (in this case, U.S. dollars and Canadian dollars) that are both quoted against a third currency (in this case, the Deutschemark). This does not involve the direct exchange rate between the two currencies but is derived from their common rates against a third currency.

The Deutschemark Is Currently Selling for