Question

Assume the canadian dollar is equal to $.90 and the argentine peso is equal to $.30. the value of the canadian dollars is _____ argentine pesos.

a. 3
b. 0.25
c. 0.3
d. 2

Answer 1

Answer: a. 3

Step-by-step explanation:

Let CAD/ARS = rate of canadian dollar in terms of argentine peso
CAD/USD = rate of canadian dollar in terms of US Dollar = $0.90
ARS/USD = rate of argentine peso in terms of US Dollar = $0.30

Since canadian dollar and argentine peso have US dollar as their common variable currency (that is the currency which can change its amount for one unit of another currency), the exchange rate of canadian dollar in terms of argentine peso is given by


`CAD/ARS = (CAD/USD)/(ARS/USD) = \frac {\$ 0.90}{\$ 0.30} \\ewline \boxed{CAD/ARS = 3}`

Hence, 1 canadian dollar = 3 argentine peso.