Which of the following is the best definition of the exchange rate?
A)The price at which the government translates the currency of another country
B)The price at which imports are traded for imports in the stock exchange
C)The price of one currency in terms of another in the foreign exchange market
D)of these

Question

Quizplus · Accepted Answer

The exchange rate refers to the price of one currency in terms of another currency in the foreign exchange market. It is the rate at which one currency can be exchanged for another. Choice A is incorrect as it refers to the government's exchange rate, which is typically different from the market exchange rate. Choice B is incorrect as it does not refer to the exchange rate and instead describes the trading of imports in the stock exchange. Choice D is incorrect as it is an incomplete answer, and none of the choices given are accurate.

Which of the Following Is the Best Definition of the Exchange