Due on Dec 11 at 11 PM EST An exchange rate is the price of one country\'s curre

Question

Due on Dec 11 at 11 PM EST An exchange rate is the price of one country's currency expressed in another country's currency The exchange rates of the euro ( ) and the Japanese yen (V) relative to the U.s. dollar ($) are listed as follows: Spot Rate Euro 0.7245 $1 Yen ¥111.8300 / $1 When exchange rates are stated in the foreign exchange rate quotation represents the units of domestic currency that can be purchased with $. terms, How many euros can purchase? 0.005183 O 0.006479 € 0.005831 O 192.94 The home currency price of one unit of foreign currency is called quotation. Type here to search up

Explanation / Answer

Direct quote: It is the foreign exchange rate quoted as domestic currency per unit of foreign currency
Indirect quote: It is the foreign exchange rate quoted as a price of foreign currency per unit of domestic currency.

SO, in the first case, if the foreign currency quotation represents units of domestic currency to be purchased for $1, then it is a "indirect quote". So, the answer is indirect terms

In the second case, home currency price of one unit of foreign currency is a "direct quote".

Required: Euro/Yen = Euro/$ * $/Yen
= 0.7245 * 1/111.8300
= 0.006479
So, the answer is Option B

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