Question6 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: None of the options are correct AUD/USD 0.6333 AUD/USD 1.5789 USD/AUD 1.5789 USD/AUD 0.6333 ResetMaximum marks: 1 Flag question undefined

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BlackTom AI · Accepted Answer

To tackle this question, I’ll first restate the key figures involved in Barbara’s purchase and the resulting rate interpretation.
Barbara bought USD 1,299 and was charged AUD 2,051.03. The direct quote for the exchange rate is read as AUD per 1 USD (AUD/USD) unless another currency pair is specified. Therefore, the appropriate rate is the amount of Australian dollars needed to buy one U.S. dollar.
Option 1: None of the options are correct. This would be true only if none of the listed pairs matched the calculated rate, but one option does align with the data, so this statement is inaccurate.
Option 2: AUD/USD 0.6333. This would imply that 1 USD costs 0.6333 AUD, which contradicts Barbara’s AUD charge of around 2,051 for 1,299 USD, where the AUD per USD should be well above 1.0. Hence this is incorrect.
Option 3: AUD/USD 1.5789. This expresses that 1 USD costs 1.5789 AUD. Calculating 1,299 USD × 1.5789 AUD/USD ≈ 2,050.7 AUD, which is very close to the charged 2,051.03 AUD when considering rounding and any minor fees. Therefore this aligns with the given data and is plausible.
Option 4: USD/AUD 1.5789. This would express the reciprocal quote (USD per AUD) rather than AUD per USD. It would imply 1 AUD equals 1.5789 USD, which would lead to a total in AUD far lower than 2,051 for 1,299 USD, making it inconsistent with the actual charge. This is incorrect.
Option 5: USD/AUD 0.6333. As a USD per AUD quote, this would mean 1 AUD equals 0.6333 USD, which again does not match the provided AUD amount for the USD purchase and is therefore incorrect.
In summary, the reasoning hinges on recognizing that the transaction amount in AUD divided by the amount in USD yields the AUD per USD rate, which corresponds to the AUD/USD quote. The reciprocal quotes (USD/AUD) are not appropriate here unless explicitly stated, and they would not reproduce the observed AUD charge for the USD amount in the question. The closest alignment to the data is the AUD/USD 1.5789 option, with a minor discrepancy attributable to rounding.}

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