Answer-first summary for fast verification
Answer: 1.2815.
## Explanation To find the AUD/USD spot rate, we need to use the given exchange rates: - AUD/CHF = 1.4024 (AUD per 1 CHF) - USD/CHF = 1.0943 (USD per 1 CHF) We want AUD/USD, which is the amount of AUD per 1 USD. We can derive this by dividing the AUD/CHF rate by the USD/CHF rate: \[ \text{AUD/USD} = \frac{\text{AUD/CHF}}{\text{USD/CHF}} \] \[ \text{AUD/USD} = \frac{1.4024}{1.0943} \] \[ \text{AUD/USD} = 1.2815 \] **Step-by-step reasoning:** 1. Both rates are expressed per 1 CHF 2. To eliminate CHF, we divide AUD/CHF by USD/CHF 3. This gives us AUD per USD: (AUD/CHF) ÷ (USD/CHF) = AUD/USD 4. Calculation: 1.4024 ÷ 1.0943 = 1.2815 Therefore, the AUD/USD spot rate is closest to 1.2815, which corresponds to option B.
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An investor gathers the following spot exchange rate information:
| AUD/CHF | 1.4024 |
|---|---|
| USD/CHF | 1.0943 |
AUD/CHF is the amount of AUD per 1 CHF.
USD/CHF is the amount of USD per 1 CHF.
The AUD/USD spot rate is closest to:
A
0.7803.
B
1.2815.
C
1.5346.
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