An exchange rate is the price of one country\'s currency expressed in another co

Question

An exchange rate is the price of one country's currency expressed in another country's currency. The exchange rates of the euro (C) and the Japanese yen (yen) relative to the U.S. dollar ($) are listed as follows: When exchange rates are stated as_____ quotation, the foreign exchange rate quotation represents the units of domestic currency that can be purchased with $1. How many euros can yen1 purchase? You know the exchange rate of the euro and the yen in terms of the dollar. Considering what you know, you would need to calculate the_____rate between the euro and the yen to get their exchange rate. Direct and indirect quotations have_____relationship.

Explanation / Answer

When exchange rates are stated as direct quotation, the foreign exchange rate quotation represents the units of domestic currency that can be purchased with $1.

How many euros can 1 yen purchase?

Euro / 1 yen = (euro / 1$) * (1$ / yen)

1 yen can purchase euro 0.005596.

You need to calculate the cross rate between the euro and yen to get their exchange rate.

Direct arte and indirect quotations have Inverse relationship.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.