A direct quote of $1.6 per British pound in the United States is equivalent to a direct quote of .625 British pounds per U.S.dollar in Great Britain.

Question

Quizplus · Accepted Answer

To convert a direct quote of one currency to the other, we can either divide 1 by the direct quote (in GBP/USD) to get the direct quote in USD/GBP, or vice versa. Using this method, we can see that:

- Direct quote of 1.6 USD/GBP ⇒ 1/1.6 = 0.625 GBP/USD
- Direct quote of 0.625 GBP/USD ⇒ 1/0.625 = 1.6 USD/GBP

Therefore, a direct quote of $1.6 per British pound in the United States is equivalent to a direct quote of .625 British pounds per U.S. dollar in Great Britain.

A Direct Quote of $1