2. Foreign exchange rate quotations

An exchange rate is the price of one countrys currency expressed in another countrys currency.

The exchange rates of the euro ( ) and the Japanese yen () relative to the U.S. dollar ($) are listed as follows:

	Spot Rate
Euro	0.5447/$1
Yen	102.5600/$1

When exchange rates are stated as ? quotation, the foreign exchange rate represents the number of domestic currency that can be purchased with one unit of foreign currency.

a. an indirect b. a direct

Given the exchange rate data above, how many yen () can one euro ( 1) purchase?

244.78

160.05

188.29

235.36

Direct and indirect quotations have ? relationship.

a. an independent b. a reciprocal