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AFM

Exchange rate determination - ACCA (AFM) lectures

VIVA Subject Guide
YouTube video

3 Comments

  1. Jesse
    am I wrong of have you got your illustration of dollars and pounds the wrong way round?
  2. Jesse
    am I wrong or have you got your illustration of dollars/pounds the wrong way round? **
  3. Shiraz
    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.

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