ECONOMICS
FOREIGN CURRENCY MARKETS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
In the foreign exchange market for the Mexican peso, which of the following would best describe the exchange rate for the peso?
|
|
The interest rate earned from saving pesos
|
|
|
The price of a peso in terms of some other currency
|
|
|
The price of a good in Mexico in terms of another goods in Mexico
|
|
|
The price of a peso in terms of pesos
|
Explanation:
Detailed explanation-1: -The price at which one currency is traded for another in the foreign exchange market is called the ‘foreign exchange rate’.
Detailed explanation-2: -1 USD = 18.392789 MXN Mar 10, 2023 12:25 UTC The currency converter below is easy to use and the currency rates are updated frequently.
Detailed explanation-3: -What will happen to the international value of the Mexican Peso if the interest rate in Mexico falls?-The demand for pesos will decrease since people in other countries will buy fewer Mexican financial assets.
Detailed explanation-4: -Which of the following happen to the value of the Mexican peso and the Canadian dollar? The peso depreciates and the dollar appreciates.
There is 1 question to complete.