Question

The exchange rate is:
Select one:
a. a tax imposed on members of a stock exchange.
b. a price for raw materials that are imported.
c. the value of our currency in terms of another currency
d. a term used in shipping to describe how fast a ship can get into and out of port.

Answer 1

Answer:

the correct answer is c. the value of our currency in terms of another currency

Explanation:

an exchange rate is the value of a one currency in terms of another nations currency. eg: a US 1 dollar equals Euro 1.2!

The currency rates are primarily decided by the supply and demand for a currency and these rates are useful in many instances such as international trade and investing.