Question 1:

The quotes in American terms for the Australian dollar (AUD or A$ and the euro (EUR or ) are 0.7261 and 1.1675 respectively

(assume these are mid-rates representing averages of the bid and ask rates). What is the cross rate for EUR/AUD (units of A$ per 1)?

Question 2:

The quotes in European terms for the Taiwanese dollar (TWD or T$) and the Canadian dollar (CAD or C$) are 30.65 and 1.2940 respectively (mid-rates).

What is the cross rate for CAD/TWD (units of T$ per 1C$)?

Question 3:

Your company asks for a quotation on the Euro (EUR) from various correspondents and gets the following bid-ask quotes

(expressed in American terms): Bank A: 1.1610-15; Bank B: 1.1613-17 If your company wants to sell EUR, which bank would you recommend dealing with? Why?