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What are the different ways foreign exchange rates are quoted. Discuss.

What are the different ways foreign exchange rates are quoted. Discuss.

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Answer #1

The different ways in which foreign exchange rates are quoted are
1. Direct Quote
2. Indirect Quote

Direct quote is the quote in which foreign currency is the base or fixed currency and the domestic currency is the variable currency. The spot and forward rates are quoted in this way. USD to Euro will be be a direct quote.

Indirect is the quote in which domestic currency is fixed currency or base currency and foreign currency is variable currency.
Indirect quote for US is Euro to USD quote.

Please Discuss in case of Doubt

Best of Luck. God Bless
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