dont know why i am still struggling with basics… try not to laugh #89054 The direct method of foreign exchange quotations: A) is used primarily in the U.K., Canada, and the U.S. B) quotes the domestic currency per unit of foreign currency: DC/FC. C) quotes the foreign currency per unit of domestic currency: FC/DC.
C
B
scrap that…B
jdane…we both are getting confused in this easy question. It is B for sure now. C is for indirect
I agree… Direct has a “D” on top (thats how I try to remember it)
direct = domestic indirect = foreign
Your answer: C was incorrect. The correct answer was B) quotes the domestic currency per unit of foreign currency: DC/FC. The direct method of foreign exchange quotations is quoted as DC/FC. From page 551 Volume 1 of CFAI text “If a in a:b is the foreign currency and b is the domestic currency, then the quote is termed a direct quote” I dont know why i let this f**k with my head, but it does… I feel like my qbank is broken or I really need to find a new exam to take. I hear the Series 7 is good…
You’ll get it bud. Keep at it.
a:b = b/a = direct quote
Dude … no one is laughing here - we’re here to help and push each other. It’s good to make dump mistakes here (I do them all the time) so we won’t repeat that come test day. As per your question, I think of it alphabetically. D comes before F so DC is on top of FC (your imagination can fly on this one, but whatever works — are u into domestic/local chicks or foreign chicks - no offense to anyone out there)
if this was not B, then I would have called it quits.
omg cfaboston that is what i have been looking for… OK, so a:b is the same thing as b/a … It confuses me, but i think i can remember that is there anyway we can put these into words… Like b/a is the price of b per one unit of a. a:b is the price of…
I swear to God i get at least 4 qbank questions wrong a night because I dont know what "Eur/" really means.. I am used to see it the text book way of the Eur:…
clama Wrote: ------------------------------------------------------- > Dude … no one is laughing here - we’re here to > help and push each other. > It’s good to make dump mistakes here (I do them > all the time) so we won’t repeat that come test > day. > > As per your question, I think of it > alphabetically. D comes before F so DC is on top > of FC (your imagination can fly on this one, but > whatever works — are u into domestic/local > chicks or foreign chicks - no offense to anyone > out there) This is an excellent point. Most questions on the board I cannot answer, and I feel terrible. We all need a confidence booster here and there. Post all that you have questions on so we can all benefit.
Direct Domestic Dominatrix (Dominatrix, on top) My memory trick FWIW
haha well last one and then i will let you guys get back to your work… this one also tripped me up: The domestic interest rate is 8% and the foreign interest rate is 6%. If the spot rate is 4 domestic units/foreign unit, what should the forward exchange rate be for interest rate parity to hold? A) 4.075. B) 3.930. C) 4.250.
dude, people post here because even they didn’t get it correct or have problem in understanding the logic behind it.
is it 4.075 A?
4*1.08/1.06 = 4.07547 = A