ECONOMICS
BARRIERS TO TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The rate at which one currency is exchanged for another-this is the definition for what term below?
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Euro
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Credit
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Exchange Rate
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None of the above
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Explanation:
Detailed explanation-1: -A bilateral exchange rate refers to the value of one currency relative to another. Bilateral exchange rates are typically quoted against the US dollar (USD), as it is the most traded currency globally.
Detailed explanation-2: -A lower exchange rate lowers the price of a country’s goods for consumers in other countries, but raises the price of imported goods and services for consumers in the low value currency country.
Detailed explanation-3: -Definition: Exchange rate is the price of one currency in terms of another currency.
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