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Basic Question 3 of 4
CA$ is selling for $0.71 (CA$:US$ = 0.71) and the buying rate for GBP is $1.42 (GBP:US$ = 1.42). The GBP:CAD cross rate is ______.
User Contributed Comments 4
| User | Comment |
|---|---|
| ankurwa10 | CA$ and US$ as well as GBP and US$ are mentioned in direct quotes here. Therefore, the GBP CAD rate of 2 is also cross rate. Is it the correct understanding ? |
| choas69 | A/B = (A/USD) / (B/USD) A/B = (A/USD) x (USD/B) this would be very helpful and short. |
| mtsimone | @choas69: Perfect. That simple formula keeps me sane where the currency you want to dump cancels. |
| davidt876 | chaos & mtsimone - just remember in these types of questions they have already selected the correct selling and buying rates for you to use.. if they give you both bid and ask prices, for any of the pairs, you'll need to take a second to think thru which prices you should be using |
I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
calculate and interpret currency cross-rates
CFA® 2025 Level I Curriculum, Volume 1, Module 8.