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Using the EUR/USD and USD/JPY rates provided, select the correct EUR/JPY cross rate: EUR/USD: 1.1274 USD/JPY: 112.65 a. 127.0016 b. 127.00 c. 0.0100 d. 99.92

Question

Using the EUR/USD and USD/JPY rates provided, select the correct EUR/JPY cross rate:

EUR/USD: 1.1274

USD/JPY: 112.65

a. 127.0016

b. 127.00

c. 0.0100

d. 99.92

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Solution

To calculate the EUR/JPY cross rate, you need to multiply the EUR/USD rate by the USD/JPY rate.

Here's how you do it:

  1. Take the EUR/USD rate which is 1.1274.
  2. Multiply it by the USD/JPY rate which is 112.65.
  3. The calculation is 1.1274 * 112.65 = 127.00161.

So, the correct answer is:

a. 127.0016

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