Euro-Pound Exchange Rate Calculation

What is the euro-pound exchange rate?

Suppose you observe the following exchange rates: €1 = $1.50; £1 = $2.00. Calculate the euro-pound exchange rate.

A. €1.25 = £1.00

B. £1.3333 = €1.00

C. €3.00 = £1

D. €1.3333 = £1.00

Answer: D. €1.3333 = £1.00

The euro-pound exchange rate can be calculated by observing the given exchange rates: €1 = $1.50 and £1 = $2.00.

From the given exchange rates, it can be determined that the value of €1 is equivalent to 1.50/2.00 times the value of £1.

Therefore, €1 = $1.50 is equal to £1 = $2.00.

This implies that the value of €1 is €1 = $1.50 = £0.75.

Hence, the euro-pound exchange rate can be calculated as £1 = €1 / £0.75 = €1.3333.