Given These Two Exchange Rates,$1 = 1

question 29

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 and in pounds.

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

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Definitions:

Imports

Goods or services brought into a country from abroad for sale.

GDP

Gross Domestic Product, the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

GDP Deflator

A standard for assessing the price rates of all freshly made, domestically sourced, final goods and services in an economic environment.

Real GDP

Gross Domestic Product adjusted for inflation, reflecting the value of all goods and services produced by an economy in real terms.