For foreigners,the intersection of the demand for US dollars and the supply of US dollar is known as the
A)Inflation rate
B)Exchange rate
C)Price
D)Quantity

Question

​For foreigners,the intersection of the demand for US dollars and the supply of US dollar is known as the
A)​Inflation rate
B)Exchange rate
C)Price
D)​Quantity

Quizplus · Accepted Answer

The intersection of the demand for US dollars and the supply of US dollars is known as the exchange rate. This determines the value of the US dollar in relation to other currencies. In other words, it is the price at which one currency can be exchanged for another. Option A (inflation rate) is not relevant to the given context. Option C (price) and Option D (quantity) are too broad and do not capture the specific concept being referred to.

​For Foreigners,the Intersection of the Demand for US Dollars and the Supply

For Foreigners,the Intersection of the Demand for US Dollars and the Supply