A Foreign Exchange Dealer Using the Indirect Form of Quotation

question 19

Multiple Choice

A foreign exchange dealer using the indirect form of quotation has quoted A$1.00 equals US$0.6961/0.7754. What does this represent?

• A) A buying rate of US$0.7754 for A$1.00.
• B) A selling rate of A$0.7754 for US$1.00.
• C) A buying rate of A$0.6961 for US$1.00.
• D) A selling rate of US$0.7754 for A$1.00.

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Definitions:

Product Market

A marketplace where finished goods and services are bought and sold.

Product Market

The marketplace in which final goods or services are offered for purchase by consumers, businesses, and the public sector.

Cell Phones

Portable electronic devices used for communication over long distances without a physical connection.

Circular-Flow Diagram

A visual framework that demonstrates the pathways through which money travels among marketplaces, connecting businesses to households.