Important Points for IC 89 - Management Accounting Exam
Page 49 Of 54
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Direct Quotation is a quotation which indicates the unit of domestic currency as against a single unit of the foreign currency.
Indirect quotation is a quotation in which domestic currency of a country is treated as base currency against the foreign currency.
Foreign exchange quotes are two-way quotes, expressed as a bid and an offer price.
Bid is the price at which the dealer is willing to buy another currency.
The offer is the rate at which dealer is willing to sell another currency.
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