Final answer:
To answer Requirement 1, £100 would be a greater amount than $100. For Requirement 2, £100 would be a greater amount than $100 Canadian. In Requirement 3, the cross-rate for Canadian dollars in terms of British pounds is approximately 0.6259, and the cross-rate for British pounds in terms of Canadian dollars is approximately 1.5975.
Step-by-step explanation:
Requirement 1: To determine which would you rather have, $100 or £100, you need to compare their values in US dollars. Given the exchange rate of 1 U.S. dollar to 1.5689 British pounds, $100 would be equivalent to $100/1.5689 = £63.83. Therefore, £100 would be a greater amount than $100.
Requirement 2: To compare $100 Canadian and £100, you need to consider the exchange rate for Canadian dollars in terms of British pounds. Based on the given exchange rate of 1 U.K. pound to 0.9813 Canadian dollars, £100 would be equivalent to £100/0.9813 = $101.94 Canadian. Therefore, £100 would be a greater amount than $100 Canadian.
Requirement 3:
(a) The cross-rate for Canadian dollars in terms of British pounds is calculated by dividing the exchange rate for Canadian dollars by the exchange rate for British pounds. Based on the given exchange rates of 1 U.K. pound to 0.9813 Canadian dollars and 1.5689 British pounds to 1 U.S. dollar, the cross-rate for Canadian dollars in terms of British pounds is (0.9813/1.5689) ≈ 0.6259.
(b) The cross-rate for British pounds in terms of Canadian dollars is calculated by dividing the exchange rate for British pounds by the exchange rate for Canadian dollars. Using the same exchange rates as in part (a), the cross-rate for British pounds in terms of Canadian dollars is (1.5689/0.9813) ≈ 1.5975.