The exchange rate is the value of one nation's currency relative to the currencies of other countries.

Question

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The statement accurately describes the concept of exchange rate. It measures the value of one nation's currency in relation to those of other nations, often expressed as the amount of foreign currency per unit of domestic currency. It is an important factor in international trade and finance, influencing the flow of goods, services, and investments across borders.

The Exchange Rate Is the Value of One Nation's Currency