Let's solve the given exchange rate problems step by step.

Given exchange rates:

• 1 US Dollar (USD) = 1.32 British Pounds (GBP)
• 1 US Dollar (USD) = 1.23 Euros (EUR)

(a) A notepad costs US$850. Calculate the price in:

(i) British Pounds:

To convert US dollars to British pounds, divide the dollar amount by the exchange rate for GBP.

$\text{Price in GBP} = \frac{850}{1.32} \approx 643.94 \, \text{GBP}$

(ii) Euros:

To convert US dollars to Euros, divide the dollar amount by the exchange rate for EUR.

$\text{Price in EUR} = \frac{850}{1.23} \approx 691.06 \, \text{EUR}$

(b) Convert 400 Euros to:

(i) US Dollars:

To convert Euros to US dollars, multiply the amount in Euros by the exchange rate (USD/EUR).

$\text{Amount in USD} = 400 \times 1.23 = 492 \, \text{USD}$

(ii) British Pounds:

First, convert Euros to US dollars as done above, then convert the USD amount to British pounds.

1. Convert 400 Euros to USD: $492 \, \text{USD}$
2. Convert USD to GBP: $\frac{492}{1.32} \approx 372.73 \, \text{GBP}$

Final answers:

• (a) (i) 643.94 GBP (ii) 691.06 EUR
• (b) (i) 492 USD (ii) 372.73 GBP

Do you want more details or have any questions?
Here are 5 related questions:

1. How do exchange rates fluctuate in global markets?
2. How can one use cross-currency exchange rates for different currencies?
3. What role does the foreign exchange market play in international trade?
4. How can you calculate profit/loss when converting currencies?
5. What impact does inflation have on exchange rates?

Tip: When converting between currencies, always check if the exchange rates have changed, as they can fluctuate frequently.