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	0.7957 / $1
Yen	108.4500 / $1

When exchange rates are stated in (American / European) terms, the foreign exchange rate quotation represents the units of domestic currency that can be purchased with $1.

How many euros can 1 purchase?

170.38

0.007337

0.008804

0.009538

The home currency price of one unit of foreign currency is called ( a direct / indirect) quotation