Cross Rate Given these two exchange rates,$1 = 1.3254 Australian dollars and $1 = £0.5233,compute the cross rate between the Australian dollars and the pound.State this exchange rate in Australian dollars and in pounds.

Question

Quizplus · Accepted Answer

To find the cross rate between the Australian dollar (A$) and the pound (£), divide the exchange rate of the Australian dollar per US dollar by the exchange rate of the pound per US dollar: 1.3254 / 0.5233 = 2.5329. Therefore, £1 = A$2.5329. Conversely, A$1 = £0.3948.

Cross Rate Given These Two Exchange Rates,$1 = 1