Exchange Rates and International Transactions An exchange rate can be quoted in two ways Direct The price of the foreign currency in terms of dollars Indirect The price of dollars in terms of the foreign currency Copyright C 2003 Pearson Education, Inc Slide 13-4Copyright © 2003 Pearson Education, Inc. Slide 13-4 Exchange Rates and International Transactions ▪ An exchange rate can be quoted in two ways: • Direct – The price of the foreign currency in terms of dollars • Indirect – The price of dollars in terms of the foreign currency