Question

How is the exchange rate defined?

a.

The value of a country's goods and services in the global market

b.

The price of one country's currency in terms of another currency

c.

The interest rate set by central banks in different countries

d.

The rate at which commodities are exchanged internationally

Answer: (b).The price of one country's currency in terms of another currency Explanation:The exchange rate represents the price of one country's currency in terms of another currency, determined in the foreign exchange market.

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Q. How is the exchange rate defined?

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