I am studying Foreign Exchange Management and have landed in doubt in very basic question. Actually there are two questions which are creating doubt and they are as follows:
Que 1. If the Canadian dolllar is equal to $ 0.86 and the German Mark is equal to $ 0.28, what is the value of the German Mark in terms of Canadian dollars?
Answer given is 0.3256
Que 2. If the German Mark is equal to $ 0.35 and the French Franc is worth 0.31 German Mark, what is the franc/dollar exchange rate?
Answer given is 9.228 French Francs per dollar
I had absolutely no problems in reaching the answer to Question no. 1 but to the second question, I am getting confused as to how the answer has been calculated. Would it be right to assume that the quotes are indirect in Que 2 or the answer to the second question have been wrongly given.
Please guide me, though it is very elementary and fundamental to ask at this level.