ETS Business Major Field Test: International Finance
Exchange Rate: Price of one currency in units of another currency.
Bid Rate: Price at which a dealer is willing to buy a given currency
Ask Rate: Price at which a dealer is willing to sell a currency.
% Bid/ Ask Spread =
Direct Quote: US dollar price of 1 unit of a foreign currency.
Indirect Quote: Foreign price of one US dollar.
Spot Rate: Exchange rate of a currency for immediate delivery. Settlement within one to two business days.
Forward Rate: Exchange rate of a currency with delivery at some point in the future.
Cross Rate: An exchange rate between two currencies other than the US dollar.