The exchange rate is the
A) number of units of one currency that exchanges for a unit of another currency.
B) volume of currency that flows internationally during a year.
C) number of ounces of gold annually used in trade.
D) ratio of exports to imports.
E) annual turnover rate of the money supply.

Question

Quizplus · Accepted Answer

The exchange rate is the value of one currency in relation to another currency, which is measured as the number of units of one currency that exchanges for a unit of another currency. It shows how much one currency is worth in terms of another currency.

The Exchange Rate Is the