Question12 Whilst Barbara was travelling in the US, she purchased the new iPhone 17 Pro at the airport for USD $1,299. Her CBA credit card charged her AUD $2,051.03, excluding any fees. The direct quote for the exchange rate applied by CBA is: AUD/USD 0.6333 USD/AUD 0.6333 AUD/USD 1.5789 USD/AUD 1.5789 None of the options are correct ResetMaximum marks: 1 Flag question undefined

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Question12: Whilst Barbara was travelling in the US, she purchased the new iPhone 17 Pro at the airport for USD $1,299. Her CBA credit card charged her AUD $2,051.03, excluding any fees. The direct quote for the exchange rate applied by CBA is:
Options:
- AUD/USD 0.6333
- USD/AUD 0.6333
- AUD/USD 1.5789
- USD/AUD 1.5789
- None of the options are correct

Option 1: AUD/USD 0.6333
- Interpretation: This asks us to read the rate as the amount of USD per 1 AUD. If AUD/USD = 0.6333, then 1 AUD = 0.6333 USD. Using this rate to convert AUD to USD would give USD = AUD × 0.6333. To see if this aligns with the transaction, compute the implied USD amount: 2,051.03 AUD × 0.6333 ≈ 1,300.0 USD. This is very close to the actual USD price of 1,299, suggesting this rate could plausibly be the rate used.

Option 2: USD/AUD 0.6333
- Interpretation: This reads as USD per 1 AUD as well, since USD/AUD is just another way to express USD per AUD. If USD/AUD = 0.6333, then 1 AUD costs 0.6333 USD, which matches the same calculation as Option 1. The two quotes are reciprocals of each other; in this exact number, USD/AUD 0.6333 is equivalent to AUD/USD 1/0.6333 ≈ 1.5789, not 0.6333. This reveals a potential inconsistency in labeling because if USD per AUD is 0.6333, then AUD per USD would be approximately 1.5789.

Option 3: AUD/USD 1.5789
- Interpretation: If AUD/USD = 1.5789, then 1 AUD = 1.5789 USD. Applied to the transaction, 2,051.03 AUD × 1.5789 USD/AUD ≈ 3,239 USD, which is far from the actual 1,299 USD charged. This would imply a much larger USD amount than was spent, indicating a mismatch with the observed transaction. Therefore, this option seems inconsistent with the price paid and the charged AUD amount.

Option 4: USD/AUD 1.5789
- Interpretation: This states USD per AUD equals 1.5789. Using this, 2,051.03 AUD × 1.5789 USD/AUD ≈ 3,239 USD, again far from 1,299 USD. As with Option 3, this would not align with the actual purchase value in USD, suggesting a mismatch.

Option 5: None of the options are correct
- Interpretation: This would be selected if none of the presented quotes could reasonably reflect the exchange rate actually used. Given the arithmetic above, at least one of the reciprocal pairs (AUD/USD 0.6333 or USD/AUD 0.6333) could reflect the USD-per-AUD rate, while the others do not align with the transaction data.

In summary, the intuitive calculation from the transaction (1,299 USD for 2,051.03 AUD) yields an implied USD per AUD rate of about 0.6333, which corresponds to AUD/USD 0.6333 or equivalently USD/AUD approximately 1.5789 depending on how you quote the pair. The presence of both a 0.6333 option in AUD/USD and a 1.5789 option in USD/AUD reflects reciprocal relationships. However, using the transaction amount directly would typically support AUD/USD 0.6333 as the direct quote. The provided key indicates AUD/USD 1.5789 as the correct option, which would imply a different interpretation or a reciprocal framing of the quote. Regardless, the essential idea is that the rate used must reconcile 2,051.03 AUD with 1,299 USD, and the reciprocal relationship explains the apparent confusion between the options.

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