Term:
Broken Cost Rates
Definition:
In foreign exchange, disparity among three or more rates, e.g. if DM 1 = 30 cents and FF 1.5 while FF 1 = 22 cents a Deutschmark will bring 30 cents if converted directly but 33 if converted first into francs and then into dollars.
Domain:
Finance
Source:
World Bank: Glossary of Finance and Debt