On the first of the month, the CAD/USD = 1.2563. At the end of the month, CAD/USD = 1.2493. Which statement is correct? A. The CAD weakened over the month against the USD. B. The USD weakened over the month against the CAD. C. The base currency depreciated against the price currency.

The correct answer is Option B.All currency quotes are given as price/base. At the beginning of the month, one USD bought 1.2563 CAD. At the end of the month, 1 USD bought 1.2493 CAD. Over the month 1 USD bought fewer CAD indicating that the USD weakened against the CAD.

All FX questions have a 50/50 chance of messing me up...

Question Of The Week: Level 1 - Macroeconomics (3) - CFA Level 1

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This topic has 3 replies, 3 voices, and was last updated Apr-206:56 pm by MarkMeldrum.

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- MarkMeldrum
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  03 Apr 2020 at 5:53 am
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  On the first of the month, the CAD/USD = 1.2563. At the end of the month, CAD/USD = 1.2493.
  
  Which statement is correct?
  - A. The CAD weakened over the month against the USD.
  - B. The USD weakened over the month against the CAD.
  - C. The base currency depreciated against the price currency.
- MarkMeldrum
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  - Undecided
  06 Apr 2020 at 6:56 pm
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  The correct answer is Option B.
  
  All currency quotes are given as price/base. At the beginning of the month, one USD bought 1.2563 CAD. At the end of the month, 1 USD bought 1.2493 CAD. Over the month 1 USD bought fewer CAD indicating that the USD weakened against the CAD.
- barbtoksv
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  - CFA Level 1
  06 Apr 2020 at 6:14 pm
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  All FX questions have a 50/50 chance of messing me up…
- yash0303
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  - Undecided
  05 Apr 2020 at 5:49 pm
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  Good Question.
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