Exchange rates and real life

CFA Level II
#1

So this has been buggin me for a while, but does the curriculum explanation seem to be the inverse of real life. For ex. in the curriculum USD/EUR 2 would mean 2USD would buy 1 EUR, whereas in real life…if you go to Yahoo finance for ex. EUR/USD 1.3 mean 1.3 USD would buy 1 EUR.

Is there something I am missing? Someone please help

#2

You’re thinking of the other format which doesn’t have the slash. 1.3 EURUSD vs 1.3 EUR/USD

#3

.

#4

The only thing that you’re missing is that Yahoo! Finance (and the finance world in general) uses a stupid convention: EUR/USD 1.3036 means $1.3036/€. It’s stupid because it’s confusing, and needlessly so.

Forget about that for the exam. If they mean $1.3036/€, they’ll write $1.3036/€.

#5

Thanks that makes sense, I just needed to know I wasn’t crazy.

#6

Good.

That’s an assessment that exceeds my sphere of expertise.