### GIGAMIND

Folder:
115 CFA
File:
115.030.70.02 Economics - Reading 18 - 2. Exchange Rate Quotations

# 2. Exchange Rate Quotations

## c. calculate and interpret the percentage change in a currency relative to another currency;

What is direct quotation vs indirect quotation?
- A direct exchange rate quote gives the home (domestic) currency price of a certain quantity of the foreign currency quoted: Domestic Currency/Foreign Currency, or DF/FC
- An indirect quotation is the opposite of a direct quote. E.g. FC/DF

- $$\%\ spread = \frac{ask\ price - bid\ price}{ask\ price} \times 100$$