The value of a foreign currency, such as the British pound, stated in American dollars is the:

A) indirect rate.
B) forward rate.
C) direct quote.
D) forward spot rate.

A direct quote is when the value of a foreign currency is stated in terms of the domestic currency. Therefore, the value of the British pound stated in American dollars would be a direct quote. The indirect rate is when the value of the domestic currency is stated in terms of the foreign currency. The forward rate refers to a future exchange rate that has been agreed upon for a transaction taking place at a later date. The forward spot rate is a combination of the forward rate and the current spot rate.