SAP Financial Accounting (SAP FI) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the SAP Financial Accounting (SAP FI) Exam with our interactive quiz. Utilize flashcards and multiple choice questions, each with hints and explanations, to excel in your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.


Which of the following is NOT a type of exchange rate in SAP?

  1. Market rate

  2. Base currency

  3. Exchange rate spreads

  4. Inversion

The correct answer is: Market rate

The correct response identifies a type of exchange rate that is not typically recognized within the context of SAP's financial modules. In SAP, exchange rates are integral for transactions involving different currencies, and understanding the distinct types is crucial for accurate financial reporting and analysis. The term "market rate" refers to the current exchange rate at which currencies can be exchanged, a valid term within SAP. "Base currency" is crucial as it denotes the primary currency used in the financial statements of a company and is foundational in currency translations. "Exchange rate spreads" relate to the difference between the buying and selling rates of a currency and are used to manage currency risks and pricing strategies, indicating how exchange rates fluctuate based on different market conditions. The term "inversion," however, is not standard terminology in the context of exchange rates in SAP. In financial contexts, inversion might refer to reversing the rate to understand how many units of the base currency one can get per unit of the foreign currency, but it does not categorize a distinct exchange rate type within SAP's framework. This helps to clarify why "inversion" does not belong among the types of exchange rates recognized in SAP FI.