A quotation in the form yen 89.33/$US is called
A)an indirect quote in the United States.
B)a direct quote in the United States.
C)a cross-rate in Japan.
D)None of these options are correct.

Question

Quizplus · Accepted Answer

In the United States, the standard method of quoting foreign exchange rates is in direct quotes, where the domestic currency is the price currency, and indirect quotes, where the foreign currency is the price currency. A quotation in the form yen 89.33/$US is an indirect quote in the United States, where the yen is the foreign currency and the dollar is the domestic currency. A cross-rate is a foreign exchange rate that is derived from two other exchange rates.

A Quotation in the Form Yen 89