Confirmation on Economics issues references, exchange, possible

rgonzalez

I just have a few issues I’d like to confirm about the format we’ll see for Economics on the exam. The Euro and USD references are just an example.
1) Will CFAI exclusively use the EUR:USD notation, or is it possible we’ll see some USD/EUR exchange rates as well? Schweser loves the USD/EUR notation it seems…
2) Is EUR:USD and EUR/USD simply the reciprocal of each other? I just want to be able to think in terms of the : notation, and be able to switch easily between them.
3). All of the parity equations are Domestic/Foreign, right? I don’t remember seeing any Foreign/Domestic ones…
Dumb questions, I know, but I’d like to make sure I’m getting everything straight.

comp_sci_kid

1. i think you better prepare to see any of these
2. EUR:USD= 2 for me i prefer to change it to EUR2/USD

ASSet_MANagemen

EUR:USD = 2 is the same thing as 2 USD/1 EUR

ninja1024

@ Audrey, you are in trouble -:O)

Houjichasan

Simply put:
EUR/USD means “euro per dollar”. If it says EUR/USD is 2, it means we get 2 euro per dollar.
EUR:USD means “one euro costs … dollars” = “one euro is worth … dollars”.
EUR/USD = USD:EUR