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CFA Level I · CFA Level I Exam · Exchange Rate Calculations

In the exchange rate quotation CHF/EUR = 0.9500, the euro is most likely the:

The euro is the base currency. In the quote CHF/EUR = 0.9500, the denominator currency is the base, and the rate states how many Swiss francs (the price currency) are needed to buy one euro.

  1. Anumerator currency
  2. Bbase currencyCorrect
  3. Cprice currency

Explanation

In a price/base quotation, the currency after the slash is the base currency. CHF/EUR = 0.9500 means 1 EUR costs 0.9500 CHF, so the euro is the base currency and the franc is the price currency.

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