22.0k views
3 votes
a bank quotes that $1.00 will buy you 0.6 euro or 120 yen. what is the cross-rate between euro and yen?

User Oemera
by
7.8k points

1 Answer

3 votes

Final answer:

The cross-rate between the euro and yen is 200 yen/euro.

Step-by-step explanation:

The cross-rate between the euro and yen can be calculated by comparing their exchange rates with the US dollar.

If $1.00 can buy 0.6 euro and 120 yen, we can find the cross-rate by dividing the exchange rate between the yen and the dollar by the exchange rate between the euro and the dollar.

So, the cross-rate between euro and yen is: (120 yen/dollar) / (0.6 euro/dollar) = 200 yen/euro

This means that 1 euro is equivalent to 200 yen.

User Smileart
by
7.8k points