British Pound Exchange Rate Analysis
How can we determine the number of yen needed to purchase one British pound?
Given the exchange rates for GBP/USD and USD/JPY, what steps can we take to find the amount of yen required to buy a British pound?
Answer:
To determine the number of yen needed to purchase one British pound, we need to understand the exchange rates between GBP/USD and USD/JPY.
When analyzing the exchange rates, we are provided with the following information:
- GBP/USD = $1.07
- USD/JPY = 110 yen
The first step is to convert the GBP/USD rate to JPY/GBP in order to find the number of yen required to purchase a British pound.
By multiplying the GBP/USD rate with the USD/JPY rate, we can derive the JPY/GBP rate:
$1.07 * 110 yen = JPY/GBP
Calculating the above equation, we get approximately 117.7 yen as the rate to buy one British pound.
In summary, the exchange rate analysis shows that it takes around 117.7 yen to purchase a single British pound. This process involves converting the given rates and performing the necessary calculations.