Question

If the Canadian dollar to U.S. dollar exchange rate is 1.24 and the British pound to U.S. dollar exchange rate is 0.68, what must be the Canadian dollar to British pound exchange rate?

Short answer

$\text{The exchange rate would be1.8235}\mathrm{Canadian}\text{dollars per Britishpound.}$

Step-by-step solution

Concept Introduction

Exchange rate is that the rate at which domestic currency is exchanged with foreign currency. Exchange rate provides the relative price of fine in terms of domestic and foreign currency. charge per unit is incredibly volatile and it affects the economy's foreign trade. charge per unit is calculated as:

$\text{Exchange Rate}\left(e^t\right)=\frac{\text{Foreign pricelevel}\left({\mathrm{P}}_{\mathrm{f}}\right)}{\text{Domestic Pricelevel}\left({\mathrm{P}}_{\mathrm{d}}\right)}$

Explanation of Solution 

$\text{Exchange rate of}\mathrm{Canadian}\text{dollartoUS dollar is}1.24\text{.}$

$\text{Exchange rate of BritishpoundtoUS dollar is}0.68.$

$\text{Calculation of the exchange rate between}C\text{and}B\text{:}$

localid="1646989707158" $\text{Exchangerate}=1.24\times \frac{1}{0.68}=1.8235$

localid="1646989794752" role="math" $\text{Therefore, the exchange rate would be1.8235Canadiandollars per Britishpound.}$