Given the following exchange rates, what is the cross-rate for euros in terms of British pounds?

Question

Quizplus · Accepted Answer

To calculate the cross-rate for euros in terms of British pounds, we need to use the following formula:
€ / £ = € / $
We are given two exchange rates: €1 = $1.1416 and £1 = $1.3252.
We need to rearrange the second exchange rate to get the dollar value in terms of euros:
$1 = £1 / $1.3252 = 0.7539
Now we can substitute these values into the formula:
€ / £ = € / $ = € / 0.7539
Multiplying both sides of the equation by 0.7539, we get:
€ = 0.8381 £
Therefore, the cross-rate for euros in terms of British pounds is €0.8381 = £1, or approximately €1.1103 = £1. The best choice is D.

Given the Following Exchange Rates, What Is the Cross-Rate for Euros