Question

Use the information below to answer the questions that follow. U.K. Pound (£) Canada dollar U.S. $ EQUIVALENT CURRENCY PER U.S. $ 1.5763 .6344 1.0161 .9842 Which would you rather have, $100 or £100? 100 Pounds A Which would you rather have, $100 Canadian or £100? 100 Pounds What is the cross-rate for Canadian dollars in terms of British pounds? (Do not include the Canadian dollar sign, C$. Round your answer to 4 decimal places, e.g., 32.1616.) Cross-rate C$ 1.0161 £ What is the cross-rate for British pounds in terms of Canadian dollars? (Do not include the pound sign, £. Round your answer to 4 decimal places, e.g., 32.1616.) Cross-rate £ 0.6446 /C$

Answer 1

Solution: 1 which would you rather have, $100 or £100 100 pounds (pounds have more value than US dollar) 2 which would you rather have, $100 canadian or £100 100 pounds (pounds have more value than canadian dollar) 3 The cross rate for Canadian dollars in terms of British pounds x $/CS £/C$ £/$ = 1.5763 x 0.9842 = 1.5514 Cross-rate c$ 1.5514 / £ £/$ = US dollars in terms of British pounds $/C$ Canadian dollars in terms of US dollars 4 The cross rate for British pounds in terms of Canadian dollars c$/£ C$/$ x $/£ = 1.0161 x 0.6344 = 0.6446 0.6446 / C$ Cross rate£ c$/$ = US dollars in terms of Canadian dollars $/E British pounds in terms of US dollars