Question
Today, the exchange rate between the US dollar and Appleland's currency is $1.000=AAA7.506, and between the US dollar and Bananaland's currency is $0.519=BBB1.000. Calculate the
Today, the exchange rate between the US dollar and Appleland's currency is $1.000=AAA7.506, and between the US dollar and Bananaland's currency is $0.519=BBB1.000.
Calculate the implied cross-rate between Appleland's and Bananaland's currencies, expressed as the amount of AAA per one unit of BBB.
Do NOT use units in your answer, and only put your numeric answer.
Round your answer to FOUR decimal places, for example, 1.2345
Step by Step Solution
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Economics
Authors: R. Glenn Hubbard
6th edition
978-0134797731, 134797736, 978-0134106243
