Question

1. If the indirect quotation of the Canadian dollar was 1.2590, what was its direct quotation?

   	A.	0.7943
   	B.	0.7635
   	C.	0.7350
   	D.	0.7560
   	E.	None

Answer 1

Direst quotation for the indirect quotation of Canadian dollar 1.2590 will be:

= 1/1.2590

= 0.794281

Answer is A: 0.7943 (rounding off to nearest figure)

Direct Quote: It is a currency quote expressed for a foreign currency per units of domestic currency required, which shows domestic currency units are required to purchase or sell one/multiple foreign currency units. Direct quotes are base currency and as U.S. Dollar is most commonly traded on world exchanges it is treated as base currency.

Direct Quote = 1/Indirect Quote

Indirect Quote: It is a currency quote which shows the value of domestic currency to the value of units in foreign currency. In simple words equalising unit values of domestic currencies to the foreign currencies.