Which term refers to the price of the foreign currency in terms of the home currency?
A) direct exchange rate
B) indirect quote
C) indirect exchange rate
D) direct spot price
Question 2
Which of the following was part of the stability and growth pact that was required for countries to be part of the European Monetary Union?
A) The annual government budget must be no greater than 3 of GDP.
B) The annual inflation rate must remain within 1.5 of the three best-performing EU countries.
C) The annual government budget deficit could be no greater than 60 of GDP.
D) The annual inflation rate must remain within 5.5 of the four best-performing EU countries.
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