BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An exchange rate is the value of one currency in terms of another.
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True
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False
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Explanation:
Detailed explanation-1: -An exchange rate is a rate at which one currency will be exchanged for another currency. While most exchange rates are floating and will rise or fall based on the supply and demand in the market, some exchange rates are pegged or fixed to the value of a specific country’s currency.
Detailed explanation-2: -An exchange rate is a relative price of one currency expressed in terms of another currency (or group of currencies). For economies like Australia that actively engage in international trade, the exchange rate is an important economic variable.
Detailed explanation-3: -Detailed Solution. Correct answer is Foreign exchange rate. The exchange rate is the price of one currency in terms of another currency.
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