An indirect exchange rate can be converted to a direct exchange rate by:
A)Dividing the indirect rate by number of U.S.Dollars required to purchase one unit of the other currency
B)Dividing the indirect rate by 100
C)Multiplying the indirect rate by the spot rate
D)Taking the inverse of the indirect rate

Question

Quizplus · Accepted Answer

In order to convert an indirect exchange rate to a direct exchange rate, you need to take the inverse of the indirect rate. This gives you the amount of foreign currency that can be purchased for one U.S. dollar.

An Indirect Exchange Rate Can Be Converted to a Direct