CFA CFA Level 1 Question of the Week: Level 1 – Macroeconomics

Question of the Week: Level 1 – Macroeconomics

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    • MarkMeldrum
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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.
    • yash0303
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      Good Question.

    • barbtoksv
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      All FX questions have a 50/50 chance of messing me up…

    • MarkMeldrum
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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.

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