Asked by
DAYRA ANDREA CELY BAEZ
on Nov 12, 2024
Verified
The exchange rate is:
A) the price of foreign exchange determined by the interaction of supply and demand.
B) an interest rate for foreign loans determined by the interaction of supply and demand.
C) fixed by each government separately.
D) always fixed for any two currencies by the two nations involved,regardless of any agreements made with other nations.
E) fixed by GATT.
Exchange Rate
The value of one currency for the purpose of conversion to another, indicating how much one currency is worth in terms of another.
Supply and Demand
Economic model that determines the price of a commodity in a market, based on the availability of the commodity (supply) and the desire for it (demand).
- Analyze the effects of exchange rate fluctuations on a nation's economy.
Verified Answer
JS
Learning Objectives
- Analyze the effects of exchange rate fluctuations on a nation's economy.