Consider the following (buy/sell) rates posted by an Australian bank:

GBP/AUD 0.3706 - 0.3796

AUD/SGD 0.9387 - 0.9737

which are quoted in the form used by Moosa.

(a) Identify each of the four numbers: who is buying and who is selling and to whom; are these direct or indirect quotes, from whose perspective? Explain.

(b) Suppose you're just back from a trip to Singapore, you have SGD left over and you want some GBP. On the basis of the above rates, what would you have to pay for your GBP in terms of SGD? Is this a buy or a sell rate? Explain.

(c) Suppose, alternatively, that you're just back from the UK and have GBP to spare and want some SGD. On the basis of the above rates what would you pay? Is this a buy or a sell rate? Explain.