invic

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

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

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

C) depreciated 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.

invic

In the U.S., the indirect quote of USD:EUR 0.827541 is the equivalent of a direct quote of:

A) EUR:USD 0.0012.

B) EUR:USD 1.2084.

C) EUR:USD 0.1208.

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EUR:USD 1.2084 is the reciprocal of USD:EUR 0.827541.

invic

Given an indirect quote of GBP:CHF 2.2254, what is the direct quote?

A) CHF:GBP 4.4940.

B) CHF:GBP 0.0449.

C) CHF:GBP 0.4494.

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CHF:GBP 0.4494 is the reciprocal of GBP:CHF 2.2254.