Suppose the Exchange Rate Between Canadian Dollars and Swiss Francs

question 23

Multiple Choice

Suppose the exchange rate between Canadian dollars and Swiss francs is SF 1.10 = $1.00,and the exchange rate between the Canadian dollar and the euro is $1.00 = 0.68 euros.What is the cross-rate of Swiss francs to euros?

• A)0.43
• B)0.86
• C)1.41
• D)1.62

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Definitions:

Amortize

To amortize means to gradually reduce or write off the initial cost of an asset over a period, typically through regular payments covering interest and principal.

Non-Controlling Interest

A share of equity ownership in a subsidiary not attributable to the parent company, representing the portion of the subsidiary's net assets and net income not owned by the parent.

Subsidiary

A company that is controlled by another company, known as the parent company, through ownership of more than 50% of its voting stock.

Interest Revenue

Income earned on investments or money lent, represented by the amount charged to borrowers for the use of the lender's funds.