All right, so I work as a foreign exchange analyst at an investment bank, and yet, I am getting these questions wrong on the schweser mock exams and I literally have no idea how I am getting these wrong.

I know for a fact that an exchange rate (for example: 1.5 GBP/USD) implies that it takes 1.5 USD to equal 1 GBP (my banks functional currency is GBP for sh**sake so I know this is the convention). I also know that if the rate goes from 1.5GBPUSD to 1.6GBPUSD, the USD has depreciated relative to the Pound. Do the CFA questions use a different quoting convention!? For the answers in this schweser mock exam to be what it says, they would have to look at the exchange rates as 1.5GBPUSD as 1.5 GBP equals 1 USD which is entirely wrong wrong wrong.

Can someone please help? Am I going to need to remember an incorrect convention?

I didn't find the right solution from the internet.


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