If an exchange rate between the U.S.dollar and the Chinese renminbi were quoted by a Japanese bank on Japanese soil, then the exchange rate would be termed as a:
A)currency futures contract.
B)currency swap.
C)forward exchange rate.
D)currency conversion.
E)cross rate.

Question

Quizplus · Accepted Answer

A cross rate is the exchange rate between two currencies when neither are the domestic currency of the country in which the quote is given. In this case, since the exchange rate is between the U.S. dollar and the Chinese renminbi quoted by a Japanese bank in Japan, it is considered a cross rate.

If an Exchange Rate Between the U