164k views
3 votes
Help Plz!

The ________ is the value of a nation's currency as determined by market forces.

foreign currency exchange rate
trade deficit
market multiplier
balance of trade

User Amit Lohan
by
6.5k points

2 Answers

1 vote
Foreign currency exchange rate. Just so you know, you could check out the concept of floating rates.
User Dan King
by
7.2k points
7 votes

The correct answer is A. Foreign currency exchange rate

Step-by-step explanation:

In the economy, the foreign currency exchange rate refers to the amount of money or value of a nation's currency, especially in comparison to the currency of another country or zone. For example, in the United States, the national currency is the dollar and this has less value than the Euro which is used in Europe; however, the dollar has more value than the Australian dollar, the Brazilian Real, the Chilean peso, among other currencies around the world. Additionally, this exchange rate is not fixed but changes according to market and economic forces that make one currency to increase or decrease its value. Thus, it is the foreign currency exchange rate the value of a nation's currency as determined by market forces.

User Bradenm
by
5.8k points