Q67
Exchange rate between currency A and currency B, given the values of currencies A and B with respect to a third currency is known as
A.
Golden standard
B.
Flexible exchange rate
C.
Fixed exchange rate
D.
Cross exchange rate
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Exchange rate between currency A and currency B, given the values of currencies A and B with respect to a third currency is known as Cross exchange rate. A cross rate is the currency exchange rate between two currencies when neither are the official currencies of the country in which the exchange rate quote is given.