Currently, you can purchase either 124 Canadian dollars or 10,037 Japanese yen for $100. What is the ¥/C$ cross rate?

Question

Quizplus · Accepted Answer

To find the cross rate, we need to compare the currencies indirectly through the US dollar. 
- $100 can buy 124 Canadian dollars, so 1 Canadian dollar = $100/124 = $0.8065.
- $100 can also buy 10,037 Japanese yen, so 1 Japanese yen = $100/10,037 = $0.0099.
- To find the ¥/C$ cross rate, we divide the exchange rate of yen to US dollar by the exchange rate of Canadian dollar to US dollar:
¥1 = $0.0099, C$1 = $0.8065
¥1/$0.0099 divided by C$1/$0.8065
= ¥80.94/C$1
Therefore, the answer is B.

Currently, You Can Purchase Either 124 Canadian Dollars or 10,037