The Implicit Exchange Rate Between Two Currencies When Both Are

question 40

Multiple Choice

The implicit exchange rate between two currencies when both are quoted in some third currency is called a(n) :

• A)open exchange rate.
• B)cross-rate.
• C)backward rate.
• D)forward rate.
• E)interest rate.

---

Definitions:

Decimal

A number expressed using a decimal system, which includes a point to separate the integer part from the fractional part (e.g., 3.14).

Consecutive Odd Integers

Integers that follow one after another in order and are odd, each differing by two from the next (e.g., 1, 3, 5, ...).

Sum

The result of adding two or more numbers or quantities together.

Algebraic Model

A mathematical model that uses algebraic expressions to represent real-world situations.