Albert,an employee at Morgan Stanley,has been given the task of handling the foreign exchange for a customer who is moving from Brazil to Switzerland in one week.Which of the following should Albert most likely use when exchanging the client's Brazilian real for Swiss francs?
A) spot rate
B) cross rate
C) currency option
D) current U.S. rate

Question

Quizplus · Accepted Answer

Albert should use the cross rate, which is the exchange rate between two currencies, derived from their common relationships with a third currency, often the U.S. dollar. This is useful when directly exchanging Brazilian real for Swiss francs.

Albert,an Employee at Morgan Stanley,has Been Given the Task of Handling