1. avatar says

    Sorry I forgot to add that usually all currencies are quoted against USD except the “Queen’s curriencies” i.e. GBP, AUSD, NZD etc. and also the Euro that are quoted as base currencies therefore instead of $/£ (as shown in the example) we would have GBPUSD (£/$) pair – therefore it would correctly be 1.6 USD for every 1 GBP.

    I think. But I could be wrong.

  2. avatar says

    I’ve read everywhere else that the currency quotes are always: 1 of base currency (i.e. $ in this case) to however much of the counter currency (i.e £1.6 in the above example). Here the lecturer says it is the other way around.

    Forgive me but am I missing something?

    • Profile photo of John Moffat says

      The lecture makes it clear and is correct.
      In practice there are always 2 ways of quoting exchange rates – there is no ‘official’ way of quoting them (even though most quote against their own currency.

      However in the exam, if it is (for example) a $/£ quote, then it is giving the number of $’s that equal 1 £
      Similarly if it is a EUR/$ quote, then it is giving the number of EUR that equal 1 $

      I am only concerned about helping people to pass the exam, and in the exam the quotes are always as above (and as per the lecture) unless, obviously, you are told different.

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