Find Out the Cross Rate Between US$ and British Pound

question 1

Multiple Choice

Find out the cross rate between US$ and British Pound Sterling(£) if the spot rate between British Pound Sterling and Japanese Yen is ¥121/£ and the spot rate between US$ and Japanese Yen is ¥85/$

• A)$1.52/£
• B)$1.42/£
• C)$)70/£
• D)£1.52/$

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Definitions:

Marginal Utility

The additional satisfaction or utility a consumer receives from consuming one more unit of a good or service.

Total Utility

The total satisfaction or benefit a consumer receives from consuming a particular quantity of a good or service.

Salsa

a spicy sauce of tomatoes, onions, and chili peppers commonly used in Latin American cuisine.

Marginal Utility

The incremental enjoyment or advantage a consumer receives from consuming one more unit of a good or service.