A direct quote for the U.S.dollar is given at $1.45 per 1 foreign currency unit (fcu).The respective indirect quote for the U.S.dollar would be reported as
A)1.45 fcu = $1.00.
B)1.45 fcu = $.6897.
C).6897 fcu = $1.00.
D)1.00 fcu = $1.45.

Question

Quizplus · Accepted Answer

The indirect quote represents the amount of foreign currency required to purchase one U.S. dollar. To determine the indirect quote, the reciprocal of the direct quote is taken. In this case, the reciprocal of $1.45 per fcu is approximately 0.6897 fcu per dollar. Therefore, the correct indirect quote is .6897 fcu = $1.00.

A Direct Quote for the U