Business, 13.11.2019 22:31 natalie2sheffield

Exchange rates are often summarized in a matrix that lists all the exchange rate combinations between a set of countries. the columns list the exchange rate in terms of home country currency per foreign currency, where the column heading is the home country. the rows list the exchange rate in terms of foreign currency units per home currency, where the row heading is the home country. for example, ea/bis the amount of currency a needed to buy one unit of currency of b. an exchange rate matrix where there are three countries, a, b and c, would look as follows:

country

a b c

a ea/a eb/a ec/a

b ea/b eb/b ec/b

c ea/c eb/c ec/c

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