ECONOMICS
FOREIGN CURRENCY MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A(n) ____ is the price of one currency in terms of a second currency.
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export rate
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exchange rate
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excise tax rate
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interest payment
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Explanation:
Detailed explanation-1: -Most people are familiar with the nominal exchange rate, the price of one currency in terms of another. It’s usually expressed as the domestic price of the foreign currency. So if it costs a U.S. dollar holder $1.36 to buy one euro, from a euroholder’s perspective the nominal rate is 0.735 euros per dollar.
Detailed explanation-2: -Exchange rate refers to the price of foreign currency in terms of the domestic currency.
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