Ask Question
BusinessBusiness
2 August, 10:15

Suppose the exchange rate between U. S. dollars and Swiss francs is SF 1.41 = $1.00, and the exchange rate between the U. S. dollar and the euro is $1.00 = 0.70 euro. What is the cross rate of Swiss francs to euros? (In other words, how many Swiss francs are needed to purchase one euro?) Do not round the intermediate calculations and round the final answer to four decimal places.

+5
Answers (1)
  1. 2 August, 10:56
    0
    Answer: 2.0143

    Explanation:

    From the question, we are informed that the exchange rate between U. S. dollars and Swiss francs is SF 1.41 = $1.00, and the exchange rate between the U. S. dollar and the euro is $1.00 = 0.70 euro.

    The cross rate of Swiss francs to euros will be the exchange rate between U. S. dollars and Swiss francs which is SF 1.41 = $1.00 multiplied by the exchange rate between the U. S. dollar and the euro which is $1.00 = 0.70 euro. This will now be:

    = (1.41/1.00) * (1.00/0.70)

    = 1.41 * 1.4285714286

    = 2.0143

    The cross rate of Swiss francs to euros is SF 2.0143 = 1 euro
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Suppose the exchange rate between U. S. dollars and Swiss francs is SF 1.41 = $1.00, and the exchange rate between the U. S. dollar and the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Aloha Swimwear has received a special order for 3,250 bikinis at a price of $60 each. The regular average selling price is $75 per suit. The unit product cost is broken down as follows: direct labor, $8.50; direct materials, $15.
Answers (1)
Carmen is in the process of buying a car. She knows she needs a car loan, but she is unsure about which financial institution she should obtain the car loan from.
Answers (1)
It is ultimately up to the buyer to avoid fraud.
Answers (1)
Magic Mountain retires its 8% bonds for $124,000 before their scheduled maturity. At the time, the bonds have a face value of 122,000 and a carrying value of $114,000. Record the early retirement of the bonds.
Answers (1)
On May 15, Maynard Co. borrowed cash from Texas Bank by issuing a 120-day note with a face amount of $36,000. Assume a 360-day year. Required: a. Determine the proceeds of the note, assuming the note carries an interest rate of 9%. $ b.
Answers (1)
New Questions in Business
In latvia, only one six-lane highway exists, connecting riga, its capital, with moscow. otherwise, the roads are two lanes and many are made of cobblestones or bricks.
Answers (1)
When the government injects money into the economy, consumers may have more disposable income, which may lead to higher unemployment. higher production lower production. increases in taxes.
Answers (2)
Stock prices are determined in the financial markets. Management's primary goal is to maximize the firm's stock price, so financial managers need to understand how these markets operate in order to make good decisions.?
Answers (1)
The World Trade Organization (WTO) has an important role in international trade. From the list below, select all statements about the WTO that are true. It is possible that more than one statement is true. 1.
Answers (1)
On October 1, 2019, Donna Equipment signed a one-year, 8% interest-bearing note payable for $50,000. Assuming that Donna Equipment maintains its books on a calendar year basis, how much interest expense should be reported in the 2020 income
Answers (1)
Home » Business » Suppose the exchange rate between U. S. dollars and Swiss francs is SF 1.41 = $1.00, and the exchange rate between the U. S. dollar and the euro is $1.00 = 0.70 euro.
Sign Up Forgot Password?