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.

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