Which of the following statements is correct?
A) In Canada, the cost of a unit of foreign currency in Canadian dollars is a direct quotation, while the cost in that foreign currency of purchasing one Canadian dollar is referred to as an indirect quotation.
B) In Canada, the cost of a unit of foreign currency in Canadian dollars is an indirect quotation, while the cost in that foreign currency of purchasing one Canadian dollar is referred to as a direct quotation.
C) In Canada, the cost of a unit of foreign currency in Canadian dollars is a direct quotation, and the cost in that foreign currency of purchasing one Canadian dollar is also referred to as a direct quotation.
D) In Canada, the cost of a unit of foreign currency in Canadian dollars is an indirect quotation, while the cost in that foreign currency of purchasing one Canadian dollar is also referred to as an indirect quotation.

Question

Quizplus · Accepted Answer

In Canada, the cost of a unit of foreign currency in Canadian dollars is a direct quotation. This means that the cost is quoted in terms of the number of Canadian dollars required to purchase one unit of foreign currency.

On the other hand, the cost in that foreign currency of purchasing one Canadian dollar is referred to as an indirect quotation. This means that the cost is quoted in terms of the amount of foreign currency required to purchase one Canadian dollar.

Therefore, option A is the correct statement.

Which of the Following Statements Is Correct