Suppose that the current exchange rate is £1.00 = $1.50. The indirect quote from the U.S. perspective is

To find the indirect quote from the U.S. perspective based on the given exchange rate, we need to follow these steps:

1. ### Break Down the Problem

• Understand that an indirect quote shows how many units of foreign currency (in this case, GBP) can be exchanged for one unit of domestic currency (USD).
• We are given that £1.00 = $1.50, so we need to express this from the U.S. perspective.

2. ### Relevant Concepts

• The indirect quote is calculated using the formula: $\text{Indirect Quote} = \frac{1}{\text{Direct Quote}}$
• In this case, the direct quote (from the U.K. perspective) is £1.00 = $1.50.

3. ### Analysis and Detail

• Substitute the direct quote into the formula: $\text{Indirect Quote} = \frac{1}{1.50}$
• Performing the calculation: $\text{Indirect Quote} = \frac{1}{1.5} \approx 0.6667$

4. ### Verify and Summarize

• The indirect quote indicates that approximately £0.6667 can be exchanged for 1 US dollar.
• This is a direct relationship indicating how many British pounds can be obtained for one dollar.

Final Answer

The indirect quote from the U.S. perspective is approximately £0.67 for $1.00.