Given These Two Exchange Rates, $1 = 1

question 21

Multiple Choice

Given these two exchange rates, $1 = 1.32 Australian dollars and $1 = £0.56, compute the cross-rate between the Australian dollar and the pound. State this exchange rate in Australian dollars.

• A) A$2.49
• B) A$2.36
• C) A$2.91
• D) A$2.17

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Definitions:

Preexisting Duty

Preexisting duty refers to an obligation that a party is already legally required to perform, which cannot be used as consideration for a new contract.

Past Consideration

Something given or some act done in the past, which cannot ordinarily be consideration for a later bargain.

Consideration

In contract law, it is something of value exchanged between parties as part of an agreement, serving as the reason or inducement to enter into the contract.

Legally Sufficient

A term indicating that an act, document, or process meets all necessary legal requirements and standards.