Vidyalelo
Management · Q697

International Finance and Treasury

Graduate and Post Graduate · Management · question 697

Q697

In a quote exchange rate, currency that is to be purchase with another currency is called :

A.
liquid currency
B.
foreign currency
C.
local currency
D.
base currency
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
In a quote exchange rate, currency that is to be purchase with another currency is called base currency. A base currency is the first currency that appears in a forex pair quotation. In the foreign exchange market, one currency will always be quoted in relation to another because you are buying one while selling the other.