The amount of foreign currency required to purchase one U.S. dollar is called the indirect exchange rate.
What is exchange rate?
The exchange rate is the amount of foreign currency that is equivalent to one unit of the local currency.
In this case, the local currency is the current in force in the local economy, the same U.S. dollar is the local currency of the U.S economy.
What is indirect exchange rate?
The indirect exchange rate is the foreign currency equivalence of the local currency, for instance, let's assume the dollar is exchanged for 1.20 Pound Sterling, the 1.20 Pound Sterling is the indirect exchange rate of one dollar since the dollar is not expressed in its own currency, but a foreign currency amount.
Overall, the missing word, in this case, is indirect, which means that the definition given fits perfectly for the indirect exchange rate
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