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11 May, 08:47

Suppose the direct foreign exchange rates in U. S. dollars are: 1 Singapore dollar = $0.7025 1 Cyprus pound = $2.5132 Based on the information given above, the indirect exchange rates for the Singapore dollar and the Cyprus Pound (from a U. S. perspective) are:

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  1. 11 May, 09:05
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    1 US Dollar = 1.423 Singapore Dollars

    1 US Dollar = 0.3978 Cyprus pounds

    Explanation:

    US Dollar/Singapore Dollar=0.7025

    US Dollar/Cyprus Pound = 2.5132

    In order to find the indirect exchange rates we will need to reverse the fractions so we need to find

    Singapore Dollar / US Dollar

    In order to find this we will divide 1 by 0.7025 as 1 Singapore dollar is 0.7025 US dollar

    =1/0.7025=1.423

    Cyprus Dollar / US dollar

    In order to find this we will divide 1 by 2.5132 as 1 Cyprus pound is 2.5132 US dollars

    =1/2.5132=0.3978
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