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Up7
Question
A New Zealand traveler returned from Singapore with SGD7,500 (Singapore dollars). A foreign exchange dealer provided the traveler with the following quotes:
Ratio Spot Rates USD/SGD 1.2600 NZD/USD 0.7670 USD: US dollar; NZD: New Zealand dollar
The amount of New Zealand dollars (NZD) that the traveler would receive for his Singapore dollars is closest to:
- NZD7,248.
- NZD4,565.
- NZD7,761.
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My answer
1 NZD to 0.7670 USD –> 1 USD to 1.303781 NZD
And 1 USD to 1.26 SGD
So, 1.26 SGD to 1.303781 NZDÂ –> 1 SGD to 1.034747 NZD
Since the traveler has SGD 7,500.00 in his pocket, he will received (1.034747 x 7,500.00 = 7,760.61) NZD.
I chose answer 3.
But it’s incorrect and the answer should be 1.
Could anybody please help me on where did I gone wrong?
Thank you!
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Up4
We need to find how much NZD can 1 SGD buy i.e NZD/SGD
NZD/SGD = USD /SGD * NZD/USD
= 1.2600 * 0.7670
= 0.96642
1SGD can buy 0.96642 NZD, he got 7500SGD which could buy 7248 NZD ( 7500* 0.96642)
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Up2
Hi, I am new here so forgive me for my beginner level question but I am under the impression that how much NZD can 1 SGD buy be SGD/NZD i.e. 1SGD = ?NZD, can someone please correct me on this?
e.g. EUR/USD refers to how much USD can 1 EUR buy?
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