Question
If the exchange rate between USD and INR is quoted as 1
USD = Rs.83, it is _________ while when it is quoted as Rs.100 = USD 1.21, it is __________.Solution
Direct quote is when foreign currency is fixed and Indian rupee are variable (i.e. 1USD = Rs.83). Indirect quote is when foreign currency is variable and Indian Rupee is fixed (i.e. Rs.100= USD 1.21). In India, direct quotes are quoted for INR.
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