Cross Rate: Dresdner Bank Has Offered the Following Exchange Rate

question 70

Multiple Choice

Cross rate: Dresdner Bank has offered the following exchange rate quotes on Indian rupees (Rs) : Rs.83.7612/£ and $1.8654/£. What is the cross rate between the Indian rupees and the U.S. dollar?

• A) Rs. 44.9025/$
• B) Rs. 49.9375/$
• C) Rs. 51.2134/$
• D) Rs. 36,7122/$

---

Definitions:

Periodic System

An inventory system where updates to inventory levels are made periodically, as opposed to continuously.

Voucher Systems

A control and documentation system used in accounting to process and monitor transactions.

Net Method

An accounting method where discounts for early payment are assumed to be taken and sales or purchases are recorded at their net of discount values.

Purchases Discount

Purchases discount is a reduction in the price paid for goods or services, often granted to a buyer when payment is made within a specified period.