Let's solve **step-by-step** for the NZD/SGD currency bid-ask quotations using the given data. --- ### **Step 1: Write Down Given Data** #### **American Terms (USD per unit of foreign currency)** | | Bid | Ask | |--------------------|--------|--------| | NZD (USD/NZD) | 0.7321 | 0.7328 | | SGD (USD/SGD) | 0.6177 | 0.6182 | #### **European Terms (Foreign currency per USD)** | | Bid | Ask | |--------------------|--------|--------| | NZD (NZD/USD) | 1.3849 | 1.3863 | | SGD (SGD/USD) | 1.6399 | 1.6412 | --- ### **Step 2: Identify Required Quotation** We want **NZD/SGD** (i.e., how many SGD per 1 NZD). --- ### **Step 3: Use Cross Rate Formula** **Formula for cross rates using USD as the common currency:** \[ \text{Bid (NZD/SGD)} = \frac{\text{Bid (USD/SGD)}}{\text{Ask (USD/NZD)}} \] \[ \text{Ask (NZD/SGD)} = \frac{\text{Ask (USD/SGD)}}{\text{Bid (USD/NZD)}} \] > Where: > - USD/NZD: USD per 1 NZD > - USD/SGD: USD per 1 SGD --- ### **Step 4: Plug In Values** #### **Bid (NZD/SGD):** \[ \text{Bid (NZD/SGD)} = \frac{0.6177}{0.7328} \] #### **Ask (NZD/SGD):** \[ \text{Ask (NZD/SGD)} = \frac{0.6182}{0.7321} \] --- ### **Step 5: Calculate Each Value** #### **Bid:** \[ \text{Bid (NZD/SGD)} = \frac{0.6177}{0.7328} = 0.8428 \] #### **Ask:** \[ \text{Ask (NZD/SGD)} = \frac{0.6182}{0.7321} = 0.8446 \] --- ### **Step 6: Final Answer Table** | | Bid | Ask | |----------------------|--------|--------| | **New Zealand dollar / Singapore dollar (NZD/SGD)** | **0.8428** | **0.8446** | --- ### **Explanation** - **Bid:** How many SGD you get for selling 1 NZD (using the less favorable USD/SGD bid and more expensive USD/NZD ask for the market maker). - **Ask:** How many SGD you pay to buy 1 NZD (using the more expensive USD/SGD ask and less favorable USD/NZD bid). --- ### **Final Answer**: \[ \boxed{ \text{Bid (NZD/SGD)} = 0.8428 \qquad \text{Ask (NZD/SGD)} = 0.8446 } \] These are the bid-ask quotations for NZD/SGD rounded to **4 decimal places** as required.