What is the difference between direct and indirect quotes of the exchange rate? Give an example of each.

Question

Quizplus · Accepted Answer

The Answer is Exchange rates can be quoted as either domestic currency per unit of foreign currency (a direct quote) or units of foreign currency per unit of domestic currency (an indirect quote). The exchange rate between the dollar and the Japanese yen is usually reported as yen per dollar- indirect quote. The direct quote is one yen is worth approximately one U.S. penny. So the exchange rate of 110 yen to the dollar is somewhat easier to think about than .0090909 dollars per yen.

What Is the Difference Between Direct and Indirect Quotes of the Exchange