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Brut [27]
3 years ago
9

he exchange rates of the euro (€ ) and the Japanese yen (¥) relative to the U.S. dollar ($) are listed as follows: Spot Rate Eur

o € 0.5447/$1 Yen ¥ 111.83/$1 When exchange rates are stated as quotation, the foreign exchange rate quotation represents the units of foreign currency that can be purchased with $1. How many euros can ¥1 purchase? € 0.004871 € 205.31 € 0.006089 € 0.006332 Direct and indirect quotations have relationship.
Business
1 answer:
bearhunter [10]3 years ago
5 0

Answer:

€ 0.004871

Explanation:

Direct quote is a method of quoting a foreign currency per one unit of domestic currency.

Indirect quote is a method of quoting a foreign currency in which price of foreign currency is expressed in domestic currency.

In the given question to find the units Euro per Yen we need to divide the Euro per dollar rate with the Yen per dollar rate.

Euro 0.5547 / $1

Yen 111.83 / $1

Euro per Yen = 0.5547 / 111.83 = €0.004871 per ¥1

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