Suppose the exchange rate between U.S.dollars and Swiss francs is SF 1.41 = $1.00,and the exchange rate between the U.S.dollar and the euro is $1.00 = 0.80 euro.What is the cross rate of Swiss francs to euros? (In other words,how many Swiss francs are needed to purchase one euro?)Do not round the intermediate calculations and round the final answer to four decimal places.
A) 1.4100
B) 1.8859
C) 1.7625
D) 1.3395
E) 1.7801

Question

Suppose the exchange rate between U.S.dollars and Swiss francs is SF 1.41 = $1.00,and the exchange rate between the U.S.dollar and the euro is $1.00 = 0.80 euro.What is the cross rate of Swiss francs to euros? (In other words,how many Swiss francs are needed to purchase one euro?)Do not round the intermediate calculations and round the final answer to four decimal places. ​
A) 1.4100
B) 1.8859
C) 1.7625
D) 1.3395
E) 1.7801

Quizplus · Accepted Answer

To find the cross rate of Swiss francs to euros, first find how many dollars are needed to purchase one euro: $1/0.80 euro = $1.25. Then, convert this dollar amount to Swiss francs: $1.25 * SF 1.41 = SF 1.7625.

Suppose the Exchange Rate Between U