Currently, in the spot market $1 = 116.55 Japanese yen, 1 Japanese yen = 0.00956 euro, and 1 euro = 9.3616 Mexican pesos. How many U.S. dollars will one peso buy?
A) 0.0959
B) 0.1190
C) 0.8430
D) 8.4000
E) 10.430

Question

Quizplus · Accepted Answer

To find out how many U.S. dollars one Mexican peso will buy, we need to convert pesos to euros, then euros to yen, and finally yen to dollars. Starting with 1 peso = 1/9.3616 euros = 0.1068 euros (approximately). Then, 0.1068 euros = 0.1068/0.00956 yen = 11.17 yen (approximately). Finally, 11.17 yen = 11.17/116.55 dollars = $0.0958, which rounds to $0.0959.

Currently, in the Spot Market $1 = 116