What does this question from Stalla mean?

CFA Level II
#1

This is the exact question: If A1.00 = B0.72, then what is A if B1.00? a. A0.072 b. A1.280 c. A1.390 This is in the context of currencies. ?

#2

It is a quote question. You simply take the reciprocal 1/a to get the indirect quote of A:B. C. 1/.72

#3

This is yet another notation. What does “…what is A if B1.00” mean?

#4

Looking for the A/B exchange rate. It is the cost of B in terms of A. No different than Y/; cost of 1 in terms of Yen. In this case, it is just an algebra problem. You have A1.00 = B0.72 You want A(X) = B1 A1.00 / 0.72 = B(1) A1.38889 = B1 I’m taking Stalla as well. I don’t think you will see a quote like that on the test. BUT, it actually helps to look at it that way.

#5

> Looking for the A/B exchange rate. It is the cost of B in terms of A. No different than Y/; \> cost of 1 in terms of So, lets say A = $, B=yen, then their question says: If A1.00 = B0.72, then what is A if B1.00? i.e., If 1.00 = yen 0.72, then what is if yen 1.00? Sorry, it still does not make sense. Can you read this last line?

#6

read english man. I know it is difficult so close to the exam. If for 1 USD per your example you got 0.72 yen, how many would you get for 1 Yen? you would get 1/0.72 that is what they are testing. That the direct quote = 1/indirect quote and vice versa. (and yes I went thro’ that other “post” on direct vs. indirect - you always seem to want to put up such ones, so do not start off again.)