Question

When is an exchange rate considered a Cross Rate?

a.

When it involves US dollars

b.

When it involves the domestic currency of a country

c.

When it involves currencies of two different countries

d.

When it involves multiple currencies without US dollars

Answer: (d).When it involves multiple currencies without US dollars Explanation:An exchange rate is considered a Cross Rate when it involves multiple currencies, and none of them is the currency of the country.

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