Direct Quote in US is: One unit of Foreign Currency = No: of units of Home Curre

Question

Direct Quote in US is: One unit of Foreign Currency = No: of units of Home Currency

1 Swiss Franc=

1.07 US Dollar

1 Euro=

1.12 US Dollar

1 Chinese Yuan=

0.16 US Dollar

1 Japanese Yen=

0.0083 US Dollar

1 Mexican Peso=

0.066 US Dollar

Indirect Quote in US is: One unit of Home Currency = No: of units of Foreign Currency

1 US Dollar=

0.93 Swiss Franc

1 US Dollar=

0.89 Euro

1 US Dollar=

6.21 Chinese Yuan

1 US Dollar=

119.81 Japanese Yen

1 US Dollar=

15.12 Mexican Peso

******Using the following exchange rates you have researched above compute the cross rate for the Mexican Peso in terms of Yuan and the Euro in terms of Japanese Yen.

Direct Quote in US is: One unit of Foreign Currency = No: of units of Home Currency

1 Swiss Franc=

1.07 US Dollar

1 Euro=

1.12 US Dollar

1 Chinese Yuan=

0.16 US Dollar

1 Japanese Yen=

0.0083 US Dollar

1 Mexican Peso=

0.066 US Dollar

Indirect Quote in US is: One unit of Home Currency = No: of units of Foreign Currency

1 US Dollar=

0.93 Swiss Franc

1 US Dollar=

0.89 Euro

1 US Dollar=

6.21 Chinese Yuan

1 US Dollar=

119.81 Japanese Yen

1 US Dollar=

15.12 Mexican Peso

Explanation / Answer

Cross Rate for the Mexican Peso in terms of Yuan:

1 Chinese Yuan = 0.16 US $

1 Mexican Peso = 0.066 US $

Cross Rate between Peso and Dollars = 0.066 / 0.16 = 0.4125

1 Mexican Peso = 0.4125 Chinese Yuan

or 1 Chinese Yuan = 2.4242 Mexican Peso

Cross Rate of Euro in terms of Japanese Yen:

1 Euro = 1.12 US $

1 Japanese Yen = 0.0083 US $

Cross Rate between Euro and Yen = 0.0083 / 1.12 = 0.0074

So, 1 Japanese Yen = 0.0074 Euro

or 1 Euro = 135.14 Yen

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