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:

Market

A system through which buyers and sellers interact to trade goods, services, or resources.

Law Of Supply

The principle that, all else equal, an increase in the price of a good will result in an increase in the quantity supplied.

Suppliers

Entities or individuals that provide goods or services to consumers, businesses, or other organizations.

Good

A physical item that is produced and can be offered to the market to satisfy a want or need.