ECONOMICS
FOREIGN CURRENCY MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -An indirect quote is when you quote a source that is quoted and cited in another source. For example if you were reading this article by Michele Kane but wanted to use the Amy Saltzman quote (highlighted) that would be an example of an indirect quote.
Detailed explanation-2: -Example. The first line shows a direct exchange rate USD – EUR; the local currency is the to-currency. 100 USD equal 92.81993 EUR. The second line shows an indirect exchange rate EUR – USD; the local currency is the from-currency.
Detailed explanation-3: -An example of a direct quote using U.S. dollars might be stating $1.17 Canadian per U.S. dollar, rather than 85.5 U.S. cents per Canadian dollar, which would be the indirect quote.
Detailed explanation-4: -Answer and Explanation: Appreciation in the dollar means that the dollars become expensive relative to other currencies. It implies that it will be expensive for people to purchase goods in dollars. Then, the foreigners would demand fewer goods from the U.S, and the country’s exports would decline.