Question

The exchange rate

Select one:
a. is the ratio of two countries' GDPs.
b. is the rate at which one country's money is flowing into another country.
c. states the price of one currency in terms of another currency.
d. is closely related to the concept of absolute advantage.

Answer 1

Option C.

Step-by-step explanation:

States the price of one currency in terms of another currency, is the right answer.

A rate at which the currency of a nation will be exchanged for the currency of another nation is known as the exchange rate. The foreign exchange market determines the exchange rates. The foreign exchange market runs 24 hours a day except for weekends and opens for currency trading for a wide range of buyers and sellers. The exchange rate is considered as the value of one nation's currency concerning another currency.