Assume that the indirect quote is for 115 Japanese yen per U.S. dollar and that the direct quote is for 1.25 U.S.
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Assume that the indirect quote is for 115 Japanese yen per U.S. dollar and that the direct quote is for 1.25 U.S. dollars per euro. What is the yen per euro exchange rate? (143.75 yen per euro) |
Explanation
In a direct quote, the foreign currency is the base currency, on the other hand, in an indirect quote, the domestic currency is the base currency.
Computation:
= 115 Japanese yen x 1.25 USD
1 USD 1 EUR
= 115 Japanese yen x 1.25
1 EUR
= 143.75 Japanese yen per euro
Hope this helps. Let me know if you have questions and I would happily respond. Have a great day. Cheers!
Answer
Hi Student, the answer would be 143 yen per euro.
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