1. How do you calculate the direct exchange rate (DER)? (Select one)

a. Opposite/Adjacent

b. Spot Rate/Forward Rate

c. Foreign Currency/Local Currency

d. Local Currency/Foreign Currency

2. An indirect exchange rate of 0.88 could be interpreted as which of the following? (Select one)

a. It takes 0.88 of the local currency unit to acquire 1.

b. The Euro has weakened.

c. It costs 0.88 to purchase 1 of the local currency unit.

d. The Euro has strengthened.

3. If the direct exchange rate (DER) of USD to Japanese Yen changes from $0.0082 to $0.0081, that means the dollar has strengthed relative to the Yen. True or False?