What is the foreign exchange rate?

Question

Quizplus · Accepted Answer

The foreign exchange rate refers to the price of one currency in terms of another, which determines the value of international trade and investment. The other options, such as the current account and financial account, are also important components of balance of payments, but they do not directly relate to the exchange rate. The law of comparative advantage is a fundamental principle of international trade, but it does not specifically address the exchange rate.

What Is the Foreign Exchange Rate