Question

Identify an entry that is reversed in terms of the forex rates for US Dollar on a day recently

• A. 1 US $ = Rs. 39.35
• B. 1 US $ = € 1.42
• C. 1 US $ = £ 0.48
• D. 1 US $ = ¥ 114

Answer 1

The Correct Option is B

The given options list exchange rates for the US Dollar with various currencies. The task is to identify which rate appears to be reversed, i.e., if the conversion seems unlikely or incorrect.

1. Analyze each option:
   1. 1 US $ = Rs. 39.35: This implies 1 US Dollar is exchanged for 39.35 Indian Rupees. Given that historically, the US Dollar has commanded higher values in terms of Indian Rupees, this could be plausible.
   2. 1 US $ = € 1.42: This suggests 1 US Dollar is exchanged for 1.42 Euros. Typically, the US Dollar is worth less than the Euro. Hence, a rate above 1 indicates the values might be reversed.
   3. 1 US $ = £ 0.48: This means 1 US Dollar is exchanged for 0.48 British Pounds. Historically, the Pound Sterling has been generally stronger than the US Dollar, making this exchange rate feasible.
   4. 1 US $ = ¥ 114: This implies 1 US Dollar is exchanged for 114 Japanese Yen. This rate fits with historical data, where the Japanese Yen generally has lower value per single unit as compared to the US Dollar.
2. Conclusion: Upon evaluating the options, the rate where 1 US Dollar commands more than 1 Euro (1 US $ = € 1.42) appears reversed. Typically, 1 Euro has a higher value compared to 1 US Dollar, not the other way around.