Vidyalelo
Management · Q8

International Finance and Treasury

Graduate and Post Graduate · Management · question 8

Q8

In a quote exchange rate, the currency that is to 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, the currency that is to purchase with another currency is called Base currency. The base currency – also called the transaction currency is the first currency appearing in a currency pair quotation, followed by the second part of the quotation, called the quote currency or the counter currency.