French Franc Exchange Rate: $0.20

French Franc Exchange Rate

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Question

The current exchange rate for French francs is $0.20. For a U.S. bank this is an example of:

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Explanations

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A. B. C. D.

C

A direct quote provides the home currency price of a specific quantity of foreign currency. An indirect quote states the foreign currency price of one unit of home currency. A quote in American terms gives the number of US dollars per units of foreign currency, and in European terms gives the number of foreign currency units per U.S. dollar.