#### Answer

lowest term

#### Work Step by Step

Let's take a look on an example.
$\frac{5}{4} \cdot \frac{2}{5}$.
We can see that both fractions share the common factor $5$, one in the denominator and one in the numerator. So can divide $5$ and get as a result
$\frac{5}{4} \cdot \frac{2}{5} = \frac{1}{4} \cdot \frac{2}{1}$.
Rewriting the nominator of the first fraction
$\frac{1}{2 \cdot 2} \cdot \frac{2}{1}$
shows us that both fractions share the common factor $2$ and we can divide by $2$ and get
$\frac{1}{2 \cdot 2} \cdot \frac{2}{1} = \frac{1}{1 \cdot 2} \cdot \frac{1}{1} = \frac{1 \cdot 1}{2 \cdot 1} = \frac{1}{2 } $.
Because of the short cut by all possible common factors the result is in lowest term.