Given these two exchange rates, $1 = 1.43 Australian dollars and $1 = £0.69, 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, we first need to understand how many Australian dollars are equivalent to one pound. Given $1 = 1.43 Australian dollars and $1 = £0.69, we can calculate the value of one pound in Australian dollars by dividing 1.43 by 0.69, which gives approximately 2.07. Therefore, the correct exchange rate is A$2.07 for every pound.

Given These Two Exchange Rates, $1 = 1