Question

What is an Exchange Rate Quotation in the context of the Foreign Exchange Market?

a.

The rate at which currencies are bought or sold

b.

The rate at which a country's currency is exchanged for another country's currency

c.

The rate at which currencies are converted into commodities

d.

The rate at which spot and forward transactions are combined

Posted under IC 89 Management Accounting

Answer: (b).The rate at which a country's currency is exchanged for another country's currency Explanation:An Exchange Rate Quotation is the rate at which the currency of one country is exchanged for or converted into the currency of another country.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is an Exchange Rate Quotation in the context of the Foreign Exchange Market?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is a Direct Quotation in the context of Exchange Rate?

View solution

Q. What is the main characteristic of a Direct Quote?

View solution

Q. What is an Indirect Quotation in the context of Exchange Rate?

View solution

Q. How are Direct and Indirect Quotes related to each other?

View solution

Q. What is the Bid in the context of Foreign Exchange Quotes?

View solution

Q. What is the Offer (Ask) in the context of Foreign Exchange Quotes?

View solution

Q. What is the Spread in the context of Foreign Exchange Quotes?

View solution

Q. Why is the offer always higher than the bid in Foreign Exchange?

View solution

Q. How is Spread% calculated in Foreign Exchange?

View solution

Q. What is the concept of Cross Rates in Foreign Exchange?

View solution

Q. When is an exchange rate considered a Cross Rate?

View solution

Q. What is the purpose of Exchange Rate Forecasting for business entities?

View solution

Q. Which technique of Exchange Rate Forecasting uses historical data and Time series Models?

View solution

Q. What is the basis of Fundamental Forecasting in Exchange Rate Forecasting?

View solution

Q. What are the limitations of Fundamental Forecasting?

View solution

Q. On what does Exchange Rate Determination depend?

View solution

Q. How does the interest rate affect the exchange rate of a currency?

View solution

Q. How does the inflation rate impact the exchange rate of a country's currency?

View solution

Q. How do government norms, rules, and regulations influence the exchange rate?

View solution

Q. How does a change in income level affect the exchange rate of a country's currency?

View solution
View All MCQs on IC 89 Management Accounting

Recommended Subjects

Are you eager to expand your knowledge beyond IC 89 Management Accounting? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Verbal Ability

Hone your language and communication skills with our Verbal Ability category. Enhance...

IC 14 Regulations of Insurance Business

Prepare for the IC 14 Regulations of Insurance Business exam with our focused set of...

Bioinformatics

Unlock the power of data analysis in biology with our Bioinformatics category....

Highway Engineering

Navigate the road to efficient transportation with our Highway Engineering category....

Financial Management and Financial Markets

Master the world of finance with our Financial Management and Financial Markets...

Biology

Dive into the realm of life sciences with our Biology category. Explore the wonders...

Heat Transfer

Explore the fascinating world of heat transfer with our Heat Transfer category....

General Knowledge

Expand your horizons and stay informed about the world with our General Knowledge...

Molecular Biology

Dive into the intricate world of molecular biology with our specialized category....