Today the direct rate for a foreign currency is 1 FOU = 4.5 LCU Last month the direct rate for the same currency was 1 FCU - 5.0 LCU The relationship between the rates of your currency as the foreign currency would be described as Fixed Floating Changing Historical QUESTION 5 If an indirect exchange rate is decreasing, is your local currency increasing or decreasing in value? Decreasing Increasing Remaining constant It cannot be determined QUESTION 6 You are translating a set of financial statements using the temporal method. For the income statement, you might con all that apply (There may be more than one that applies.) Current rate