Suppose we have the following exchange rate quotes: If you have $225, you can ge

Question

Suppose we have the following exchange rate quotes:

If you have $225, you can get  euros. (Do not round intermediate calculations and round your answer to 2 decimal places (e.g., 32.16). Use the €/$ exchange rate in your calculation.)

One euro is worth $ . (Do not round intermediate calculations and round your answer to 4 decimal places (e.g., 32.1616).)

If you have 6,500,000 euros, you have $. (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars (e.g., 1,234,567). Use the $/€ exchange rate in your calculation.)

You can get  Mexican pesos for a euro. This type of rate is called cross rate.(Do not round intermediate calculations and round your answer to 4 decimal places. (e.g., 32.1616).)

Suppose we have the following exchange rate quotes:

Explanation / Answer

a. US$ = € 0.7432

$225 = € 0.7432 X 225

= € 167.22

b. US$ = € 0.7432

  € = US$/0.7432

  € = $1.3455

c. € = $1.3455

6500000€ = $1.3455 x 6500000

= $8745750

d. Mexican pesos/Euros = Ps12.8113/$ x $/€0.7432

= Ps17.2380

Euro = Ps17.2380

Yes, this kind of rate is called cross rates.

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