he following spot FX rates were reported: Japanese Yen British Pound Australian Dollar US Dollar 0.010267 1.616500 0.957900 The exchange rates indicate the number of US dollars necessary to purchase one unit of the foreign currency. From the perspective of a US investor, are the preceding FX rates direct or indirect quotations? How much of each of the foreign currencies is needed to buy one US dollar?
he following spot FX rates were reported: Japanese Yen British Pound Australian Dollar US Dollar 0.010267 1.616500 0.957900 The exchange rates indicate the number of US dollars necessary to purchase one unit of the foreign currency. From the perspective of a US investor, are the preceding FX rates direct or indirect quotations? How much of each of the foreign currencies is needed to buy one US dollar?
Chapter4: Exchange Rate Determination
Section: Chapter Questions
Problem 25QA
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- The following spot FX rates were reported:
Japanese Yen British Pound Australian Dollar US Dollar 0.010267 1.616500 0.957900
- The exchange rates indicate the number of US dollars necessary to purchase one unit of the foreign currency.
- From the perspective of a US investor, are the preceding FX rates direct or indirect quotations?
- How much of each of the foreign currencies is needed to buy one US dollar?
- The exchange rates indicate the number of US dollars necessary to purchase one unit of the foreign currency.
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