Assume that you had dollar quotes for the Japanese Yen and the British Pound. If you want to know the Yen/Pound exchange rate, you would rely on

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Quizplus · Accepted Answer

To determine the Yen/Pound exchange rate, one would use cross rates, which involve using two currency quotes to calculate the exchange rate between two currencies that are not directly quoted. Therefore, the answer is B. Forward rates are used to lock in future exchange rates, hedge ratios are used to minimize risk, and the Wall Street Journal may report currency quotes but does not provide the calculation of cross rates.

Assume That You Had Dollar Quotes for the Japanese Yen