The foreign exchange rate is ________.
A) the relative value between one currency and another
B) the rate at which countries do business
C) the relative value between the dollar and foreign currencies
D) the relative value of last year's currency to this year's

Question

Quizplus · Accepted Answer

The foreign exchange rate refers to the relative value between one currency and another. It is the rate at which one currency can be exchanged for another in the foreign exchange market. It is not related to the rate at which countries do business or the relative value of last year's currency to this year's. It can also refer to the relative value of the dollar to other foreign currencies, but this is not the most comprehensive definition.

The Foreign Exchange Rate Is ________