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Direct quote is the one where the home currency is quoted per unit of foreign currency (eg. USD 1 = INR 60) and vice versa is the indirect quote i.e where the foreign currency is quoted per unit of home currency (eg. INR 1 = USD ). Further, a direct quote of one country becomes an indirect quote for another country and vice versa.

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Study Questions (with Answers) Page 4 of 5 2. For each of the following changes, represent the change by an appropriate shift of the supply and/or demand curves for currency shown at the right.

Then record whether the indicated currency appreciates or depreciates as a result of the change, by circling the appropriate word. a. Example: Arbitrage Currency Trading. The current exchange rates of the EUR/USD, EUR/GBP, GBP/USD pairs are, andrespectively.

In this case, a forex .

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