CFAI FSA Question -Interpreting exchange rate

Hi all, I have been trying to read Multinational corporation. Page 199, question 7-12 in FSA book: Canadian /US = x Assuming you don’t know any relation between these two, how do you interpret this? I assume for multiplication by rates for remeasurement/translation, we are looking for exchange rate in Reporting currency/foreign currency format. Can somebody help me with this one. Many thanks S

solarpower- you could be given an exchange rate table either way- be very, very careful and check that you have your correct numerators and denominators before you start either multiplying or dividing. that said- the chart on 199 is backwards- it’s in errata- should be USD/CAD to get the answers they got.

Thanks bannisja. I am finding the FSA section pretty tricky.

it sucks the 1st time around, but once you start doing q-bank stuff, the multinationals will come pretty easy. pensions will always kinda suck. good news- the actual test was very straightforward in terms of FSA last year (and from what i’ve heard from others the year before as well). so tons of time in, but you’ll be rewarded. corp fi is where i’m at now- much easier stuff, but strangely i think that’s an area i screwed up on last year… they came at it with some tough q’s. keep at the FSA though- it’s one of those things where you KNOW you’ll see an item set on multinationals and you know you’ll see one on pensions, so it’s not time wasted at all studying it hard.