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.