The direct quotes for euros and British pounds are $.90 and $1.50, respectively. What is the cross-rate between euros and pounds expressed in units of pounds per euro?

Question

Quizplus · Accepted Answer

The cross-rate between euros and pounds can be calculated by dividing the direct quote for euros ($.90) by the direct quote for pounds ($1.50). This gives 0.90 / 1.50 = 0.60 pounds per euro.

The Direct Quotes for Euros and British Pounds Are