Currency Exchange Rates

Came across the following question. The answer provided is A but I think B is correct. Can anyone please confirm?


A New Zealand traveler returned from Singapore with SGD 7,500 (Singapore dollars). A foreign exchange dealer provided the traveler with the following quotes:

Ratio Spot Rates

USD/SGD 1.2600

NZD/USD 07670

The amount of New Zealand dollars (NZD) that the traveler would receive for his Singapore dollars is closest to:

A. NZD 7,248

B. NZD 7,761

C. NZD 4,565

Answer = A

The NZD/SGD cross-rate is NZD/USD x USD/SGD = 0.7670 x 1.2600 = 0.9664

The traveler will receive: NZD0.9664 per SGD; NZD0.9664 x SGD7,500 = NZD7,248


The correct answer is A.

Currency exchange rate questions are always easiest by looking at the currency units.

7500 SGD = 7500 * 1.26 SGD * (USD/SGD) = 7500*1.26 USD = 7500*1.26*0.7670 USD * (NZD/USD) = 7248 NZD