Suppose a bank customer with €1,000,000 wishes to trade out of euro and into Japanese yen.The dollar-euro exchange rate is quoted as $1.60 = €1.00 and the dollar-yen exchange rate is quoted at $1.00 = ¥120.How many yen will the customer get?

Question

Quizplus · Accepted Answer

First, convert euros to dollars: €1,000,000 * $1.60/€1 = $1,600,000. Then, convert dollars to yen: $1,600,000 * ¥120/$1 = ¥192,000,000.

Suppose a Bank Customer with €1,000,000 Wishes to Trade Out