question 3 (1 point)\nif the cad/eur fx rate is 1.40, what is the formula for finding the eur/cad…

question 3 (1 point)\nif the cad/eur fx rate is 1.40, what is the formula for finding the eur/cad rate?\n1.40 - 1/1.40\n1.40/1\n1 - 1.40\n1/1.40

question 3 (1 point)\nif the cad/eur fx rate is 1.40, what is the formula for finding the eur/cad rate?\n1.40 - 1/1.40\n1.40/1\n1 - 1.40\n1/1.40

Answer

Explanation:

Step1: Understand currency - pair relationship

The CAD/EUR rate means the number of Canadian - dollars per euro. The EUR/CAD rate means the number of euros per Canadian - dollar. They are reciprocal to each other.

Step2: Calculate the EUR/CAD rate

If CAD/EUR = 1.40, then EUR/CAD=$\frac{1}{CAD/EUR}=\frac{1}{1.40}$

Answer:

D. 1/1.40