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:

Sale Price

The final price at which an item is sold after any discounts or deductions have been applied.

Invoice

A document issued by a seller to a buyer that lists products or services provided along with the total amount due for payment.

Terms

Conditions and stipulations under which agreements and contracts are made, outlining the obligations of involved parties.

Mark-up

Additional pricing on goods’ cost aimed to cover running expenses and secure profit.