Question
From a home-currency perspective, when is an FX quote an indirect quote?
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Answer
When it shows foreign currency per one unit of home currency.
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Question
If you are given USD/EUR and USD/JPY, how do you conceptually derive EUR/JPY?
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Answer
Eliminate USD by combining the two USD pairs consistently.
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Question
Practice prompt: Given USD/EUR and USD/JPY, what is the key idea for finding EUR/JPY without heavy calculation?
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Answer
Make USD cancel, leaving JPY per EUR.
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Question
Practice prompt: You are given GBP/USD and USD/JPY. How would you qualitatively obtain GBP/JPY?
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Answer
Multiply in the order that cancels USD, leaving JPY per GBP.
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