The _____ exchange rate is the market rate between two currencies.
A)nominal bilateral
B)real bilateral
C)nominal effective
D)real effective

Question

Quizplus · Accepted Answer

The nominal bilateral exchange rate is the market rate between two currencies. The term "nominal" refers to the exchange rate without consideration of inflation or other economic factors. The "bilateral" aspect refers to it being between two specific currencies. The other options refer to broader measures of exchange rates that take into account other currencies and economic factors.

The _____ Exchange Rate Is the Market Rate Between Two