A foreign exchange dealer using the indirect form of quotation has quoted A$1.00 equals US$0.6961/0.7754. What does this represent?
A) A buying rate of US$0.7754 for A$1.00.
B) A selling rate of A$0.7754 for US$1.00.
C) A buying rate of A$0.6961 for US$1.00.
D) A selling rate of US$0.7754 for A$1.00.

Question

Quizplus · Accepted Answer

The selling rate is the rate at which the dealer will sell the foreign currency. In this case, the dealer will sell US$1.00 for A$0.7754.

A Foreign Exchange Dealer Using the Indirect Form of Quotation