To determine the exchange rate between British pounds and Brazilian reals,you can convert pounds into U.S.dollars at the direct rate and then convert dollars into reals at the indirect rate.You now have a cross rate (pounds to reals)via the U.S.dollar.

Question

Quizplus · Accepted Answer

This statement is true. The cross rate between pounds and reals can be calculated by first converting pounds to U.S. dollars using the direct rate (pounds to dollars), and then converting dollars to reals using the indirect rate (dollars to reals). This results in a cross rate between pounds and reals that is derived via the U.S. dollar.

To Determine the Exchange Rate Between British Pounds and Brazilian