土豆妮

If the exchange rate value of the CAD goes from USD 0.60 to USD 0.80, then the CAD:

A) depreciated and Canadians will find U.S. goods more expensive.

B) depreciated and Canadians will find U.S. goods cheaper.

C) appreciated and Canadians will find U.S. goods cheaper.

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The CAD is now more expensive in terms of USD, and thus it has appreciated. Therefore, each CAD yields more USD than before, and Canadians are able to purchase more U.S. goods with each CAD, making U.S. goods relatively cheaper.

土豆妮

In Japan, the direct quote of USD:JPY 108.82 is the equivalent of an indirect quote of:

A) JPY:USD 0.091895.

B) JPY:USD 0.009189.

C) JPY:USD 0.918949.

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JPY:USD 0.009189 is the reciprocal of USD:JPY 108.82.

土豆妮

Suppose that the quote for the CAD in New York is CAD:USD 0.6666. What is the quote for USD in Toronto USD:CAD?

A) 1.5001.

B) 0.3333.

C) 1.0000.

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Take the reciprocal of 0.6666 = 1 / 0.6666 = 1.5001