Asked by MARIO MURILLO on May 26, 2024
Verified
Which of the following is the best definition of exchange rate.
A) The market where one country's currency is traded for another's.
B) International bonds issued in a single country, usually denominated in that country's currency.
C) Federal Crown corporation that promotes Canadian exports by making loans to foreign purchasers.
D) The idea that the exchange rate adjusts to keep purchasing power constant among currencies.
E) The price of one country's currency expressed in another country's currency.
Exchange Rate
The rate at which one currency can be traded for another in the currency exchange market.
Constant Among Currencies
A concept or value that remains unchanged when compared across different currencies.
- Acquire knowledge on the basics of foreign exchange markets and their roles.
Verified Answer
HW
Hailei WilsonJun 01, 2024
Final Answer :
E
Explanation :
The best definition of exchange rate is the price of one country's currency expressed in another country's currency. This definition accurately captures the essence of what an exchange rate is—a measure of how much one currency is worth in terms of another.
Learning Objectives
- Acquire knowledge on the basics of foreign exchange markets and their roles.
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