Asked by
hailey balestra
on Dec 20, 2024Verified
Four units of Country A's currency (call it "a") can be exchanged for three units of Country B's currency (call it "b") . What would be the indirect quote in Country B?
A) 4 a : 3 b
B) 0.75 a : 1 b
C) 1.33 a : 1 b
D) 1 a : 0.75 b
Indirect Quote
A foreign exchange rate quotation that specifies the foreign currency amount that can be purchased with one unit of the domestic currency.
Country B's Currency
The legal tender or monetary system used in a hypothetical Country B, which can be exchanged for goods and services or traded for other currencies.
Country A's Currency
The legal tender issued by Country A's central bank or monetary authority, used as a medium of exchange within Country A.
- Understand the concepts of direct and indirect quotes in the currency exchange process.
Verified Answer
ST
Learning Objectives
- Understand the concepts of direct and indirect quotes in the currency exchange process.