Anne Dietz at Changi #3. Anne Dietz lives in Singapore, but is making her first business trip to Sydney, Australia. Standing in Singapore’s new terminal #3 at Changi Airport, she looks at the foreign exchange quotes posted over the FX trader’s booth. She wishes to exchange 1,000 Singapore dollars (S$ or SGD) for Australian dollars (A$ or AUD). What Anne sees:

Spot rate (SGD = 1.00 USD) 1.3400 Spot rate (USD = 1.00 AUD) 0.7640

a. What is the Singapore dollar to Australian dollar cross rate?

b. How many Australian dollars will Anne get for her Singapore dollars?