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Answer: 1.4%.
To calculate the percentage change in the JPY/CAD cross-rate, it is necessary to invert the CAD/USD rate before multiplying by the JPY/USD rate. This ensures the intermediary currency (USD) cancels out. The correct calculation involves: 1. **Beginning of period JPY/CAD rate**: \(\frac{1}{1.3216} \times 105.42 = 79.77\) 2. **End of period JPY/CAD rate**: \(\frac{1}{1.2944} \times 104.74 = 80.92\) 3. **Percentage change**: \(\frac{80.92}{79.77} - 1 = 1.44\% \approx 1.4\%\) Option A is incorrect because it does not invert the CAD/USD rate. Option C is incorrect because it reverses the chronological order of the JPY/USD rates.
Author: LeetQuiz Editorial Team
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An analyst gathers the following foreign exchange rate information for CAD/USD and JPY/USD at the beginning and end of a period. CAD/USD is the amount of CAD per 1 USD, and JPY/USD is the amount of JPY per 1 USD. The percentage change in the JPY/CAD cross-rate for the period is closest to:
A
-2.7%.
B
1.4%.
C
2.8%.
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