Which of the following is false concerning exchange rates quoted in Canada?
A) They are usually quoted in terms of the foreign currency.
B) An exchange rate is the price of one country's currency expressed in dollars.
C) A direct exchange rate quotation in The National Post tells you how many Canadian dollars it takes to buy one unit of the foreign currency quoted.
D) When an exchange rate is quoted as the units of foreign currency needed to buy one Canadian dollar it is called an indirect exchange rate quote.
E) A European exchange rate quoted in The National Post will tell you how many units of a foreign currency you can purchase with one Canadian dollar.
Correct Answer:
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