Question

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

a.

A quotation indicating the unit of domestic currency against a single unit of foreign currency

b.

A quotation indicating the unit of foreign currency against a single unit of domestic currency

c.

A quotation indicating the exchange rate between two foreign currencies

d.

A quotation indicating the exchange rate between two domestic currencies

Answer: (b).A quotation indicating the unit of foreign currency against a single unit of domestic currency Explanation:An Indirect Quotation is a quotation in which the domestic currency of a country is treated as the base currency against the foreign currency.

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

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