The nominal exchange rate (E)as defined in the text represents
A)the number of units of foreign currency you can obtain with one unit of domestic currency.
B)the number of units of domestic goods you can obtain with one unit of foreign goods.
C)the price of domestic currency in terms of foreign currency.
D)none of the above
E) both A and C

Question

Quizplus · Accepted Answer

The nominal exchange rate (E) represents both the number of units of foreign currency you can obtain with one unit of domestic currency (option A) and the price of domestic currency in terms of foreign currency (option C). Therefore, both options A and C are correct. Option B does not define the nominal exchange rate.

The Nominal Exchange Rate (E)as Defined in the Text Represents