Calculating a currency cross rate involves determining the exchange rate for two currencies by using a third currency as a base.

Question

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This is correct, a currency cross rate involves determining the exchange rate for two currencies by using a third currency as a base. For example, if you want to determine the exchange rate from Canadian dollars to British pounds, but there is no direct exchange rate between CAD and GBP, you can use the USD as a base currency and calculate the CAD/USD and GBP/USD exchange rates to determine the CAD/GBP cross rate.

Calculating a Currency Cross Rate Involves Determining the Exchange Rate