Question

What does "Cross rates" refer to in the foreign exchange market?

a.

Rates between major currencies

b.

Rates involving the US dollar

c.

Rates expressed by a pair of currencies without involving the country's currency

d.

Rates determined by market speculation

Answer: (c).Rates expressed by a pair of currencies without involving the country's currency Explanation:Cross rates refer to the Exchange Rate expressed by a pair of currencies in which none of the currencies is the currency of the country.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What does "Cross rates" refer to in the foreign exchange market?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is the "Spread" in the foreign exchange market?

Q. What is a characteristic of a Forward Transaction?

Q. In a spot transaction, when is the settlement date relative to the transaction date?

Q. Which of the following is NOT a type of transaction in the foreign exchange market?

Q. What is the main objective of the Foreign Exchange Market (FEM)?

Q. What is the Exchange Rate (ER)?

Q. How can entities with unhedged foreign currency exposures affect the health of the banking system?

Q. Why did the Reserve Bank of India (RBI) ask banks to set aside incremental provisioning and capital requirements for exposures to entities with unhedged foreign currency exposures?

Q. What percentage of foreign currency loans and bonds of Indian firms is usually unhedged?

Q. What sector in India witnessed substantial growth after the liberalization of the economy in 1991?

Q. When did the liberalization of the Indian Economy take place?

Q. How much did the trading in foreign exchange markets average per day in April 2013, according to the BIS?

Q. What instrument was the most actively traded in the foreign exchange market in April 2013, according to the BIS?

Q. What are the two main interbank FX trading platforms?

Q. What is the status of the Global Foreign Exchange Market Turnover according to the Bank for International Settlements (BIS) in April 2013?

Q. What determines the relative values of different currencies in the foreign exchange market?

Q. How does the foreign exchange market support international trade and investment?

Q. What is the foreign exchange market sometimes called due to the active involvement of banks in trading?

Q. Who are the main participants in the foreign exchange market?

Q. When did the modern foreign exchange market start to develop significantly?

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!