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NEW QUESTION: 1
A. Option B
B. Option D
C. Option C
D. Option A
Answer: A
NEW QUESTION: 2
By market convention, which of the following currencies are not quoted in terms of 'direct quotes' versus the USD?
A. KWD
B. CAD
C. INR
D. EUR
Answer: D
Explanation:
Remember how exchange rates are generally quoted. Most exchange rates are quoted in terms of how many foreign currencies does USD 1 buy. Therefore, a rate of 99 for the JPY means that USD 1 is equal to JPY 99.
These are called 'direct rates'. However, there are four major world currencies where the rate quote convention is the other way round - these are EUR, GBP, AUD and NZD. For these currencies, the FX quote implies how many US dollars can one unit of these currencies buy. So a quote of "1.1023" for the Euro means EUR 1 is equal to USD 1.1023 and not the other way round.
NEW QUESTION: 3
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A. True
B. False
Answer: B
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