The rate of exchange between the Mexican peso and the U.S. dollar is 12.650 (peso/dollar) and the rate of exchange between the U.S. dollar and the euro is 1.350 (dollar/euro) The cross-rate of exchange between the peso and the euro is 9.370.

Question

Quizplus · Accepted Answer

To find the cross-rate between the Mexican peso and the euro, you multiply the rate of exchange between the peso and the dollar (12.650) by the rate of exchange between the dollar and the euro (1.350), which equals 17.0775, not 9.370.

The Rate of Exchange Between the Mexican Peso and the U.S