A Currency Trader Observes the Following Quotes in the Spot

question 87

Multiple Choice

A currency trader observes the following quotes in the spot market: $$\begin{array} { l l l } 1 \text { U.S. dollar } = & 10.875 & \text { Mexican pesos } \\1 \text { British pound } = & 7.500 & \text { Danish krone } \\1 \text { British pound } = & 1.65 & \text { U.S. dollars }\end{array}$$
Given this information,how many Mexican pesos can be purchased for 1 Danish krone?

• A) 2.3446
• B) 2.0097
• C) 2.9188
• D) 2.0815
• E) 2.3925

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Definitions:

Value Added

The increase in the value of a product or service as a result of a particular process, excluding the costs of raw materials and energy.

Intermediate Products

Intermediate products are goods that are used as inputs in the production of other goods or services, rather than being sold directly to consumers.

Investment Goods

Physical goods acquired to create value over time by being used in the production of other goods or services.

Base Year

A specific year against which economic growth, inflation, and other economic indicators are measured to assess changes over time.