Table 11.1 gives the exchange rate quotations for the U.S.dollar and the British pound.
Table 11.1.Foreign Exchange Quotations

-Consider Table 11.1.If one were to sell dollars for immediate delivery,on Tuesday the pound cost of each dollar would be:
A) .7008 pounds per dollar
B) .7037 pounds per dollar
C) 1.4270 pounds per dollar
D) 1.4211 pounds per dollar

Question

Table 11.1 gives the exchange rate quotations for the U.S.dollar and the British pound.
Table 11.1.Foreign Exchange Quotations
 
-Consider Table 11.1.If one were to sell dollars for immediate delivery,on Tuesday the pound cost of each dollar would be:
A) .7008 pounds per dollar 
B) .7037 pounds per dollar 
C) 1.4270 pounds per dollar 
D) 1.4211 pounds per dollar

Quizplus · Accepted Answer

The pound cost of each dollar is the inverse of the dollar cost of each pound. On Tuesday, the dollar cost of each pound is 1.4270 dollars per pound. Therefore, the pound cost of each dollar is 1/1.4270 = 0.7008 pounds per dollar.

Table 111 Gives the Exchange Rate Quotations for the U