14-2 To a U.S.trader of foreign currencies,a direct quote indicates U.S.dollars received for each one unit of the foreign currency.

Question

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A direct quote is the value of a foreign currency stated in terms of the domestic currency. In other words, it tells you how many units of the domestic currency you need to pay for one unit of the foreign currency. For a U.S. trader of foreign currencies, a direct quote would indicate how many U.S. dollars they would receive for each unit of the foreign currency.

14-2 to a U