A dealer based in New York City provides a spot exchange rate quote of 18.8590 MXN/USD to
Question:
A dealer based in New York City provides a spot exchange rate quote of 18.8590 MXN/USD to a client in Mexico City. The inverse of 18.8590 is 0.0530.
1. From the perspective of the Mexican client, the most accurate statement is that the:
A. direct exchange rate quotation is equal to 0.0530.
B. direct exchange rate quotation is equal to 18.8590.
C. indirect exchange rate quotation is equal to 18.8590.
2. If the bid/offer quote from the dealer was 18.8580–18.8600 MXN/USD, then the bid/offer quote in USD/MXN terms would be closest to:
A. 0.05302–0.05303.
B. 0.05303–0.05302.
C. 0.053025–0.053025.
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