The nominal exchange rate is the
A)nominal interest rate in one country divided by the nominal interest rate in the other country.
B)ratio of a foreign country's interest rate to the domestic interest rate.
C)rate at which a person can trade the currency of one country for another.
D)real exchange rate minus the inflation rate.

Question

Quizplus · Accepted Answer

The nominal exchange rate is defined as the rate at which one can exchange the currency of one country for the currency of another. This is a direct measure of how much of one currency can be exchanged for a certain amount of another currency.

The Nominal Exchange Rate Is the