Which of the following is true about exchange rates?

Question

Quizplus · Accepted Answer

Exchange rate changes can quickly create a competitive advantage for businesses that import or export goods and services. A small change in exchange rates can significantly affect the cost of goods or services sold in a foreign market, potentially giving companies an advantage or disadvantage in that market. Therefore, it is important for companies to closely monitor exchange rates and adjust their strategies accordingly. Choices A, C, and D are all incorrect as exchange rates are not fixed by treaty, they do change over time, and currencies such as the Russian ruble can be just as complex as any other currency in terms of exchange rates.

Which of the Following Is True About Exchange Rates