CFA CFA Level 2 HELP PLEASE……. Currency Brain ache

HELP PLEASE……. Currency Brain ache

  • This topic has 5 replies, 3 voices, and was last updated Apr-17 by cs_1988.
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    • cs_1988
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      If any one is on Mock 2, book 1 = In question 3 it lists exchange rates, and the whole question assumes the USD is depreciating.

      FX CAD/USD = 1.48 in 07
      FX CAD/USD = 1.37 in 08 – Surely the dollar is appreciating/strengthening???

      Thanks in advance

    • cs_1988
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      Morning paper!

    • cs_1988
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      and Schweser, lol!

    • Alta12
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      USD depreciated. the quote is always based on the base currency in this case USD.

    • vincentt
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      @alta12 is right, the logic is that previously you would need $1.48 CAD to buy a dollar, but now you only need $1.37 CAD to buy a dollar, clearly the dollar is cheaper now.

    • cs_1988
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      of course. It had got to the point where i couldn’t see how it was right lol. Thanks…. Hopefully it won’t happen on the exam!

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