The exchange rate is the
A) value of money.
B) quantity of euros, dollars, yen, etc., that are traded on currency markets.
C) amount of foreign currency that is used to buy goods made in your country.
D) number of units of a foreign currency that can be bought with one unit of your own currency.

Question

Quizplus · Accepted Answer

The exchange rate is the number of units of a foreign currency that can be bought with one unit of your own currency. This means that it reflects the relative value of your currency to other currencies, and determines how much of another currency you can acquire with your own.

The Exchange Rate Is the