Question

If you have a positive Direct quote in the home country and a negative indirect quote...

If you have a positive Direct quote in the home country and a negative indirect quote in the foreign country witch currency appreciated and witch depreciated?

Homework Answers

Answer #1

Indirect quote expresses the variable amount of foreign currency required to buy or sell fixed units of the domestic currency

Direct quote expresses the variable amounts of the domestic currency required to buy fixed units of foreign currency

So if direct quote is positive it means higher amounts of domestic currency is required

If indirect quote is negative it means lower amounts of foreign currency is required

Hence, foreign currency appreciated and home currency depreciated

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