Favorable

and unfavorable (foreign) exchange conditions. If foreign exchange is quoted in the money of the country where i ued a falling rate for it signifies that the exchange situation is favorable to (in favor of) the country where the exchange is i ued and unfavorable to (against) the country where it is payable. In other words, the exchange is le costly—the money of the country where the exchange is payable costs le in the money of the country where the exchange is i ued. For instance, exchange on London is quoted in New York in dollars (and cents) and when the rate is falling the pound sterling is worth le in dollars (and cents). If foreign exchange is quoted in the money of the country where it is payable a falling rate for it signifies that the exchange situation is unfavorable to (against) the country where the exchange is i ued and favorable to (in favor of) the country where it is payable. In other words, exchange is more costly—the money of the country where the exchange is i ued brings le in the money of the country where the exchange is payable. For instance, exchange on Paris is quoted in New York in francs and when the rate is falling le in francs (and centimes) can be obtained for the dollar. If foreign exchange is quoted in the money of the country where i ued a rising rate for it signifies that the exchange situation is unfavorable to (against) the country where the | exchange is i ued and favorable to (in favor of) the country where it is payable. In other words, exchange is more costly —the money of the country where the exchange is payable costs more in the money of the country where the exchange is i ued. For instance, exchange on London is quoted in New York in dollars (and cents) and when the rate is rising the pound sterling costs more in dollars (and cents). 195