Question

For an American trader, an interbank quotation of $1.4631/€ is in

A. indirect terms

B direct terms

C non conventional terms

D European terms

Answer 1

$ 1.4631 / Euro Means, For Purchase of 1 Euro, $ 1.4631 are required.

FOr American Trader, Euro is Foreign Currency and $ is Home Currency.

Direct Quote is For purchase of One foreign currency how many units of Home Currency is Required.

Here we are purchasing Euro i.e Foreign currency.

Thus it is direct Quote.

Option B is correct.

Pls coment, if any further assistance is required.