Question

Suppose the direct quote for sterling in New York is 1.3110-5. Then the direct quote for dollars in London is:________.

A. 0.7110-5
B. 2.6220-30
C. 0.7625-8
D. 1.3110-5

Answer 1

C. 0.7625-8

Step-by-step explanation:

The direct quote for dollars in London would be the reciprocal of the quote for sterling in New York. By the reciprocal, I mean the 1 divided by the direct quote for sterling in New York which is shown below:

direct quote for dollars in London=1/ 1.3110

direct quote for dollars in London=0.7628

direct quote for dollars in London=1/1.3115

direct quotes for dollars in London=0.7625

A range between 0.7625 -0.7628