A Foreign Exchange Dealer Using the Direct Form of Quotation

question 2

Multiple Choice

A foreign exchange dealer using the direct form of quotation quoted US$1.00 equals A$1.2897/1.4366. What does this represent?

• A) A buying rate of A$1.4366 for US$1.00.
• B) A buying rate of US$1.2897 for A$1.00.
• C) A selling rate of A$0.1.2897 for US$1.00.
• D) A bid-ask spread of A$0.1469.

---

Definitions:

Serving

Serving refers to the act of presenting food or drinks to someone, typically in a restaurant or hospitality context.

Total Utility

The overall satisfaction or pleasure a consumer receives from consuming a particular quantity of goods and services.

Slice of Pie

Often used metaphorically to represent a portion or share of something, such as profit or resources.

Marginal Utility

The additional satisfaction or utility received by a consumer from consuming one more unit of a good or service.