A foreign exchange rate quote can best be thought of as:
A)a bank's estimate of value of the foreign currency
B)the price of one currency in terms of another
C)a measure of the difference between the two countries' risk-free interest rates
D)the market's best guess about the future GDP growth rate for the foreign country

Question

Quizplus · Accepted Answer

A foreign exchange rate quote is the price of one currency in terms of another. It represents the amount of one currency that must be paid to acquire a unit of another currency. It is determined by supply and demand in the foreign exchange market. The exchange rate can be influenced by a variety of factors including economic indicators, political events, and market sentiment.

A Foreign Exchange Rate Quote Can Best Be Thought of As