Question

Robert works in the import-export department of Bank of America and he has noticed the following spot currency quotes: 1 U.S. dollar = 10.875 Mexican pesos 1 British pound = 7.500 Danish krone 1 British pound = 1.65 U.S. dollars Using the above information, determine how many Mexican pesos can purchased for one Danish krone.

Answer choices

Group of answer choices

2.0815

2.3925

2.0097

2.3446

Answer 1

Answer:

2.3925

Explanation:

The computation of the Mexican pesos is shown below:

= (1 British pound × 1 U.S. dollar) ÷ 1 British pound for the Danish krone

= (1.65 × 10.875 ÷ 7.5)

= 2.3925 Mexican pesos

Simply we multiplied the 1 British pound with the 1 US dollar and then divide it by the 1 British pound for Danish krone so that the correct spot currency can come