Asked by Dennie Katuna on Jun 26, 2024
Verified
What is a country's exchange rate based on?
A) The rate at which its currency can be exchanged for currencies of other countries
B) The number of foreign banks it has
C) Tariffs and related trade restrictions
D) The relationship between its imports and exports
Exchange Rate
The worth of one currency when converted into another.
Currencies
Systems of money in general use in particular countries or geographical areas, facilitating the transfer of goods and services.
- Comprehend the function of exchange rates within the realm of international commerce.
Verified Answer
CA
Christina AdamsJul 02, 2024
Final Answer :
A
Explanation :
The exchange rate of a country is determined by the rate at which its currency can be exchanged for the currencies of other countries, reflecting the value of one currency in terms of another.
Learning Objectives
- Comprehend the function of exchange rates within the realm of international commerce.