The direct and indirect quotes on the Swiss franc are 0.75 and 1.33, respectively. The direct and indirect quotes on Poland's zloty are 0.25 and 3.94, respectively. How many zloty will it cost a Polish merchant to purchase a watch priced at 270 Swiss francs.

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To find out how many zloty it will cost to purchase something priced in Swiss francs, we first convert the price from Swiss francs to US dollars using the direct quote for Swiss francs, and then convert that amount from US dollars to zloty using the indirect quote for zloty. The watch is priced at 270 Swiss francs. Using the direct quote for Swiss francs (0.75), the price in US dollars is 270 * 0.75 = 202.5 USD. Then, using the indirect quote for zloty (3.94), the cost in zloty is 202.5 * 3.94 = 797.85, which rounds to approximately 810 zloty.

The Direct and Indirect Quotes on the Swiss Franc Are