Question

Suppose the direct foreign exchange rates in U.S. dollars are: 1 Singapore dollar = $0.7025 1 Cyprus pound = $2.5132 Based on the information given above, the indirect exchange rates for the Singapore dollar and the Cyprus Pound (from a U.S. perspective) are:

Answer 1

Answer:

1 US Dollar =1.423 Singapore Dollars

1 US Dollar = 0.3978 Cyprus pounds

Explanation:

US Dollar/Singapore Dollar=0.7025

US Dollar/Cyprus Pound= 2.5132

In order to find the indirect exchange rates we will need to reverse the fractions so we need to find

Singapore Dollar/ US Dollar

In order to find this we will divide 1 by 0.7025 as 1 Singapore dollar is 0.7025 US dollar

=1/0.7025=1.423

Cyprus Dollar/ US dollar

In order to find this we will divide 1 by 2.5132 as 1 Cyprus pound is 2.5132 US dollars

=1/2.5132=0.3978