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 = 0.45 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) 3.0393
B) 3.6973
C) 3.1333
D) 2.9767
E) 2.7887

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 = 0.45 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) 3.0393
B) 3.6973
C) 3.1333
D) 2.9767
E) 2.7887

Quizplus · Accepted Answer

First, we need to convert the exchange rate between U.S. dollars and Swiss francs to Swiss francs per U.S. dollar:
SF 1.41 = $1.00
1 / (SF 1.41) = $1.00 / SF
0.7092 SF = $1.00

Next, we can use the exchange rates given to find the cross rate of Swiss francs to euros:
0.45 euro = $1.00
0.45 euro / $1.00 = 1 / 0.45 euro/$
1 / 0.45 euro/$ * 0.7092 SF/$ = 1.5752 SF/euro
Rounding to four decimal places, we get:
1.5752 SF/euro ≈ 3.1333 SF/euro.

Therefore, the answer is C.

Suppose the Exchange Rate Between U