Question

Assume that Canadian dollar is equal to $0.80 and the Swiss franc is equal to $0.71. Then the value of the Swiss franc in terms of Canadian dollars (C$/SFr) is: a) 0.3621 Canadian dollars b) 0.8875 Canadian dollars c) 1.1267 Canadian dollars d) 2.51 Canadian dollars.

Answer 1

First lets understand the quotes

• It is given that $0.80 = CAD 1
  • So $1 = CAD 1/$0.80
    • $1 = CAD 1.2500
• It is given that $0.71 = SFr 1
  • So $1 = SFr 1/$0.71
    • $1 = SFr 1.4085 (rounded to 4 decimal places)
• This implies that CAD 1.25 = SFr 1.4085 = $1
  • So SFr 1 = CAD 1.25/1.4085
    • SFr 1 = CAD 0.8875 (rounded to 4 decimal places)
• So the correct answer is option b