Suppose the exchange rate of the British pound is $1.75 per pound while the exchange value of the Swiss franc is $0.667 cents per franc.The cross exchange rate between the pound and the franc is:

Question

Quizplus · Accepted Answer

To find the cross exchange rate, we need to convert one currency to the other using the relation with a third currency (usually the US dollar). In this case, we can convert from pounds to francs by first converting pounds to dollars and then dollars to francs.

The conversion factor for pounds to dollars is 1.75, so one pound is worth 1.75 dollars. The conversion factor for francs to dollars is 0.667, so one franc is worth 0.667 dollars. Therefore, the cross exchange rate is:

1 pound = 1.75 dollars
1 franc = 0.667 dollars

1 pound = 1.75/0.667 francs
1 pound = 2.624 francs

So the cross exchange rate between pounds and francs is 2.624 francs per pound.

Suppose the Exchange Rate of the British Pound Is $1