- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 7. Capital Flows and the FX Market
- Subject 1. The Foreign Exchange Market
CFA Practice Question
Which of the following is NOT true about exchange rates quoted in the United States?
A. They are usually quoted in terms of the home currency.
B. A direct exchange rate quotation in the Wall Street Journal tells you literally how many U.S. dollars it takes to buy one unit of the foreign currency quoted.
C. When an exchange rate is quoted in the Wall Street Journal as a U.S. $ equivalent it is called a direct quote.
Explanation: In the U.S. and UK indirect quotes are more common than direct quotes.
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