Given the following market rates:

		Bid Rate		Offer Rate
	USD/MYR	3.1990		3.2010
	USD/SGD	1.6280		1.6300

i. What is your quote if you are an executive with CIMB Bank, Changlun and a local importer asks for an exchange rate to pay for his purchases from Singapore? Show the logical steps to arrive at your answer.

ii. Calculate the exchange rate using the cross rate formula. (refer to Q9 (i)

iii. How do you quote to a Malaysian exporter who wishes to convert his export proceeds in SGD into MYR? Show the logical steps to arrive at your answer.

iv. Calculate the exchange rate using the cross rate formula (refer to Q9 (iii)

Q10. A bank normally displays its official foreign exchange rates in three columns namely, the Selling TT/OD rate, the Buying TT rate and the Buying OD rate. Describe under what situations a bank would use the TT buying rate and the OD buying rate when it purchases foreign exchange from its customers.

i. Explain TT Buying Rate

ii. Explain OD Buying Rate

iii. A customer of your bank presented to you a travelers cheque issued by ANZ Bank, Melbourne, Australia amounting to AUD1,800.00. The customer would like to receive immediate payment in MYR and requested your bank to purchase the cheque. Your banks counter rates for the day is as follows:

(MYR to 1 unit of Foreign Currency)	Selling TT/OD		Buying TT		Buying OD
USD	3.2240		3.1450		3.1350
AUD	3.0480		2.9720		2.9560

a. Given the above counter rates, at what rate would you purchase the travelers cheque and how much MYR would the customer receive?

b. Suppose the Australian dollar interest rate is 4.0% and a total en-route period of 14 days is required before the bank gets its reimbursement. Compute your breakeven cost for buying the draft from the customer?

c. How much MYR would the customer receive if the transaction was made by inward telegraphic transfer instead of travelers cheque? Assume no margin and no other bank charges are imposed.