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

Hint:

Compare each currency's real-world strength against the dollar: a stronger currency should need less than 1 unit per dollar, not more.

Answer 1

The Correct Option is B

Step 1: Understanding the Question:
We are given four currency quotes, all written in the form "1 US Dollar equals X units of another currency." One of these four is written backwards, meaning the stronger and weaker currency have been swapped in the equation. We need to spot which one.

Step 2: Key Formula or Approach:
A currency that is stronger than the US dollar needs less than one unit to match one dollar, so the number quoted per dollar should be less than 1. A currency that is weaker than the dollar needs many units to match one dollar, so the number quoted per dollar should be a large number, well above 1. Compare each quoted number against this rule using known real-world currency strength around that period.

Step 3: Detailed Explanation:
Take the rupee first: 1 US $ = Rs. 39.35. The rupee is much weaker than the dollar, so it should take about 39 to 40 rupees to equal one dollar. This matches the rule, so it is correct.
Take the pound: 1 US $ = £ 0.48. The pound is stronger than the dollar, roughly twice as strong, so one dollar should equal under half a pound. 0.48 fits that, so this is also correct.
Take the yen: 1 US $ = ¥ 114. The yen is weaker than the dollar, needing well over 100 yen per dollar, and 114 matches that pattern, so this is correct too.
Now take the euro: 1 US $ = € 1.42. The euro is a stronger currency than the dollar, and one euro actually buys about 1.35 to 1.42 dollars. That means the correct statement is "1 Euro = 1.42 US Dollars," not "1 US Dollar = 1.42 Euros." Writing it as 1 US$ = 1.42 Euro puts the stronger currency's larger number on the wrong side, which reverses the true relationship.

Step 4: Final Answer:
Since the rupee, pound, and yen entries all follow the expected stronger and weaker currency pattern correctly, and only the euro entry has the relationship flipped, the reversed entry is option (B), "1 US $ = € 1.42".