The weighted average exchange rate value of a country's currency is called the _____ exchange rate.
A)nominal bilateral
B)real bilateral
C)nominal effective
D)real effective

Question

Quizplus · Accepted Answer

The nominal effective exchange rate is the weighted average value of a country's currency in relation to other currencies. It takes into account the exchange rates of multiple trading partners and is a more accurate measure of a country's overall exchange rate than a bilateral exchange rate with a single trading partner.

The Weighted Average Exchange Rate Value of a Country's Currency