Study Abroad: Paris to Moscow. On your sum- mer study abroad program in Europe you stay an extra two weeks to travel from Paris to Moscow. You leave Paris with 2,000 euros (EUR) in your belt pack. Wanting to exchange all of these for Russian rubles (RUB), you obtain the following quotes:
Spot rate: USD1.1280 = EUR1.00
Spot rate: RUB62.40 = USD1.00
a. What is the Russian ruble to euro cross rate?
b. How many Russian rubles will you obtain for
your euros?

To solve this problem, we need to determine the cross rate between the Russian ruble (RUB) and the euro (EUR) and then calculate how many rubles you will obtain when exchanging your euros. 

### Part (a): Calculating the RUB to EUR Cross Rate

We have the following exchange rates:

- Spot rate: USD 1.1280 = EUR 1.00
- Spot rate: RUB 62.40 = USD 1.00

To find the cross rate between RUB and EUR, we first need to express both in terms of a common currency, in this case, USD.

1. **Convert EUR to USD**:  
   The spot rate tells us that 1 EUR = 1.1280 USD.

2. **Convert USD to RUB**:  
   The spot rate tells us that 1 USD = 62.40 RUB.

To find the RUB/EUR cross rate, we multiply these two rates:

\[
\text{RUB/EUR} = \left( \frac{\text{USD}}{\text{EUR}} \right) \times \left( \frac{\text{RUB}}{\text{USD}} \right)
\]

Substituting the values:

\[
\text{RUB/EUR} = 1.1280 \times 62.40
\]

\[
\text{RUB/EUR} = 70.3872
\]

So, the Russian ruble to euro cross rate is **70.3872 RUB per EUR**.

### Part (b): Calculating the Amount of RUB for 2,000 EUR

Now that we have the cross rate, we can calculate how many Russian rubles you will get for your 2,000 euros.

\[
\text{Amount in RUB} = 2,000 \times 70.3872
\]

\[
\text{Amount in RUB} = 140,774.4
\]

### Answer

(a) The Russian ruble to euro cross rate is **70.3872 RUB/EUR**.

(b) You will obtain **140,774.4 RUB** for your 2,000 euros.

Would you like more details or have any questions?

### Related Questions

1. How would the amount of rubles change if the exchange rate of USD to EUR increases?
2. If the USD to RUB exchange rate changes to 60, how many rubles would you receive for 2,000 EUR?
3. How do fluctuations in exchange rates impact international travelers financially?
4. What is the formula to calculate cross rates between any two currencies?
5. How can you hedge against currency exchange rate risks when traveling?

#### Tip:
When dealing with multiple currency exchanges, always convert everything to a common currency (like USD) to simplify calculations.

Learn how to calculate currency exchange rates from euros to Russian rubles when traveling from Paris to Moscow. This problem covers the cross rate calculation between currencies and provides a step-by-step solution. Suitable for travelers and adults interested in financial calculations.

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