Suppose Exchange Rates Between U

question 9

Multiple Choice

Suppose exchange rates 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 = 1.64 euros. What is the cross-rate of Swiss francs to euros?

• A) 2.27
• B) 1.41
• C) 1.64
• D) 0.43
• E) 0.86

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Definitions:

Bank Checking Account

An account at a bank or financial institution that allows for easy deposit and withdrawal of funds, typically used for daily transactions.

Petty Cash Fund

A small amount of cash kept on hand in a business for making minor, immediate purchases or reimbursements.

Accounts Payable

Liabilities representing amounts owed by a company to creditors for goods and services received.

Petty Cash Fund

A small amount of cash on hand used for covering minor or incidental expenses within a business.