If EUR/USD Is Quoted to You as 1

question 560

Multiple Choice

If EUR/USD is quoted to you as 1.1050-53, does this price represent?

• A) The number of EUP per USD
• B) The number of USD per EUR
• C) Depends on whether the price is being quoted in Europe or the US
• D) Depends on whether the price is being quoted interbank or to a customer

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Definitions:

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can purchase with a given budget at fixed prices.

Expected Percentage Return

The predicted return on an investment, expressed as a percentage of the initial investment.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from the mean of the dataset.

Weighted Average Return

A return measure that considers the proportional relevance of each component return in the calculation.