How to determine FC and DC associated with FCRP

This is related to Schweser practice exam book 1, exam 2 morning session, question 40. in solution, it treats USD as domestic and JPY as FC. why not the other way around?

Thank you

Don’t they follow the hierarchy of Pounds, Euro, USD? So whenever Pounds are in the problem they will be the Domestic currency, and when Euros are present but pounds arent they are DC, and if Euros and pounds aren’t present and USD is then they will be DC.

I read that in Econ, but it was about how Currencies were quoted, not sure if it will relate to FCRP FC and DC.

Thank you for reply. but I think the hierarchy doesn’t mean they are always in DC or FC. it is relative; always got confused. maybe, when talking about FCRP, it is always associated with FC; thus DC is implied in question as USD.

Haven’t seen question but I thought domestic currency was always the one that the quote in the question is denominated in?

Eg for the above, if the question said the exchange rate was $.01, usd would be the domestic. If it said 100 yen, jpy would be domestic.

Is that right? Anyone?