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Purchasing Power Parity

Forums › Ask CIMA Tutor Forums › Ask CIMA F3 Tutor Forums › Purchasing Power Parity

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by P2-D2.
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  • April 7, 2019 at 5:32 pm #511397
    trentwolff
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    Hi Chris,

    In your video on the purchasing power parity (Chapter 1 – example 11) you said the base currency is £ but the question has it as $/£1.70 – doesn’t this mean that the $ is the base currency?

    May 20, 2019 at 10:07 am #516539
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7142
    • ☆☆☆☆☆

    Hi,

    I suppose it technically does but don’t worry as the questions in the exam are clear as to which is the base currency and how the exchange rate works.

    Thanks

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