Exchange rate determination – ACCA (AFM) lectures

Comments

1. gjess says

   May 15, 2020 at 7:45 am

   am I wrong of have you got your illustration of dollars and pounds the wrong way round?

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   • gjess says

     May 15, 2020 at 7:45 am

     am I wrong or have you got your illustration of dollars/pounds the wrong way round? **

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     • Shiraz says

       May 27, 2020 at 7:08 am

       HI Gjess,

       The answer shown in the video seems correct. 1.70 USD is equivalent to 1 GBP and this is the spot now.

       Since we are in UK the base country is UK and the currency is GBP (in denominator). The other country is US ( in Numerator). We simply enter the figures into the formula and the answer is correct.

       Hope my explanation was helpful. Let me know if you still have a doubt.