IMPORTANT!!! Express currencies as USD, MXN, etc. Do NOT use $ before any curren
ID: 1254738 • Letter: I
Question
IMPORTANT!!! Express currencies as USD, MXN, etc. Do NOT use $ before any currencies. Do NOT space between USD and currency value. Round all numbers to 2 decimal places (ie USD 13.12)1. Given the following information, answer the questions about exchange rates and exchange rate changes:
On October 31, 2010 the USDMXN was 10.00. On the same date in 2011, the MXNUSD exchange rate was 0.07692
A. What was the DIRECT rate for the U.S. dollar last year and what was the INDIRECT rate on October 31, 2011?
Explanation / Answer
They are the inverse of what is given. USDMXN = 10. Direct rate for the US dollar is 1/10 or .10 MXNUSD = .07692. so indirect rate is 1/.07692 or 13.00