Given these two exchange rates, $1 = 1.32 Australian dollars and $1 = £0.56, compute the cross-rate between the Australian dollar and the pound. State this exchange rate in Australian dollars.

Question

Quizplus · Accepted Answer

To find the cross-rate between the Australian dollar and the pound, divide the Australian dollar rate by the pound rate: 1.32 / 0.56 = 2.36. Thus, the exchange rate is A$2.36 per £1.

Given These Two Exchange Rates, $1 = 1