Suppose that the current exchange rate is €1.00 = $1.60. The indirect quote, from the U.S. perspective is

Question

Quizplus · Accepted Answer

The indirect quote shows the amount of foreign currency per unit of domestic currency. In this case, the domestic currency is the U.S. dollar, and the foreign currency is the euro. To calculate the indirect quote, we divide 1 by the direct quote (€1.00 = $1.60). 
1/1.60 = 0.6250
Therefore, the indirect quote from the U.S. perspective is €0.6250 = $1.00.

Suppose That the Current Exchange Rate Is €1