_____ If one British pound can be exchanged for $1.50 of U.S. money, what fraction should be used to compute the indirect quotation of the exchange rate expressed in British pounds?

Question

Quizplus · Accepted Answer

An indirect quotation in the context of currency exchange is the price of the foreign currency in terms of the domestic currency. Since the question asks for the exchange rate expressed in British pounds (assuming the domestic currency is the U.S. dollar), the correct fraction is 1/1.50, which represents how many pounds you get for 1 U.S. dollar.

_____ If One British Pound Can Be Exchanged for $1