The exchange rate is the:
A) value of one currency expressed in terms of another currency.
B) reciprocal of a currency's real value.
C) value of a currency expressed in terms of the goods and services it can buy.
D) value of a currency adjusted for inflation.

Question

Quizplus · Accepted Answer

The exchange rate is primarily the value of one currency expressed in terms of another currency. It reflects the relative strength of one currency against another, based on supply and demand factors in the foreign exchange market. The exchange rate can fluctuate frequently, and is influenced by various economic factors such as interest rates, inflation, trade flows, and geopolitical events.

The Exchange Rate Is The