The correct answer is 1) direct; indirect. In direct quotations, the foreign currency's value is expressed in domestic currency terms, whereas indirect quotations show the number of foreign currency units per domestic currency unit.
A quotation representing the value of a foreign currency in dollars is referred to as a direct quotation; a quotation representing the number of units of a foreign currency per dollar is referred to as an indirect quotation. Therefore, the correct answer to the question is 1) direct; indirect.
Direct quotations are presented as the domestic currency per unit of the foreign currency, and this is typically the format used in the domestic foreign exchange market. Conversely, indirect quotations are the foreign currency units per one unit of the domestic currency, and this format is often used by the foreign exchange market in the foreign county.