Which type of data source is used for a purchase application needing currency exchange rates?

For a purchase application requiring currency exchange rates, utilizing an external system of record is appropriate because currency exchange rates are generally dynamic and sourced from external financial institutions, market data providers, or APIs that specialize in forex data. An external system of record allows the application to access up-to-date information that can fluctuate based on market conditions.

Incorporating an external system ensures that the application is not limited to static values that may become outdated quickly. This capability is essential for applications that operate in a global environment where accurate currency conversion is necessary for transactions.

Internal databases are typically used for data that remains consistent or is specific to the organization's operations, while a Pega system of record generally pertains to information managed within the Pega platform itself. Choosing not to use a system of record would hinder the application's ability to handle evolving currency rates effectively.