If the Foreign Exchange Rate Is the Price in Foreign

question 26

Multiple Choice

If the foreign exchange rate is the price in foreign currency for a dollar, then the exchange rate quote is called

• A) an American quote.
• B) an indirect quote.
• C) a direct quote.
• D) a cross quote.

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Definitions:

Treasury Department

A cabinet-level department of the federal government responsible for managing government revenue, producing currency, and implementing monetary policy.

National Banking System

A system established in the United States during the Civil War that created a uniform system of banking and currency, primarily through the National Bank Acts of 1863 and 1864.

Bank Notes

Paper money issued by banks that is used as legal tender and is backed by the promise to pay the bearer the value of the note on demand.

Lincoln

The 16th President of the United States, Abraham Lincoln, who led the country during the Civil War and worked to end slavery.