Foreign exchange gain or loss : Foreign exchange gain or loss arises when there is selling or buying of any goods and services in foreign currency. Direct exchange rate: It is the rate at which price of a unit of the foreign currency is expressed in the unit of local currency. Indirect exchange rate: It is the rate at which price of a unit of the local currency is expressed in the unit of foreign currency. To choose: The correct option.

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Chapter 11, Problem 11.11.4E

To determine

Foreign exchange gain or loss: Foreign exchange gain or loss arises when there is selling or buying of any goods and services in foreign currency.

Direct exchange rate: It is the rate at which price of a unit of the foreign currency is expressed in the unit of local currency.

Indirect exchange rate: It is the rate at which price of a unit of the local currency is expressed in the unit of foreign currency.

To choose: The correct option.

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