Suppose You Observe the Following Exchange Rates: €1 = $1

question 70

Multiple Choice

Suppose you observe the following exchange rates: €1 = $1.25; £1 = $2.00. Calculate the euro-pound exchange rate.

• A)€1 = £1.60
• B)€1 = £0.625
• C)€2.50 = £1
• D)€1 = £2.50

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Definitions:

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