Unformatted text preview: A direct exchange rate is the number of local currency units needed to acquire one foreign currency unit. The direct exchange rate has the local currency units in the numerator (the U.S. dollar for the direct exchange rate for the U.S. dollar). As a fraction, the direct exchange rate is expressed as follows: Number of local currency units One foreign currency unit The indirect and direct exchange rates are inversely related and both state the same relationship between two currencies....
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This note was uploaded on 10/22/2008 for the course ACC 440 taught by Professor Henderson during the Summer '08 term at University of Phoenix.
- Summer '08