What term is used for the rate between currencies Y and Z, which is derived from the given rates of another set of two pairs of currency (say, X and…

CA Foundation · Business Economics · PYQS · September 2024
What term is used for the rate between currencies Y and Z, which is derived from the given rates of another set of two pairs of currency (say, X and Y, and, X and Z) ?
(A) A. Ask rate
(B) B. Bid rate
(C) C. Spot rate
(D) D. Cross rate

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. Cross rate

Topics: International Trade

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