ABC Corp., a U.S.-based company, is signing a business deal with Syphed Inc., a company based in the country of Yanghor. The base currency for the deal is the U.S. dollar. The counter currency for the transactions between the two companies is Yang, the official currency of Yanghor. To be able to conduct business in Yanghor, ABC Corp. should identify how much of U.S. dollars will be required to buy an equivalent amount of purchasing power in Yang. In short, ABC Corp. needs to identify the _____ of the currency of Yanghor.
A) equity value
B) capital share
C) exchange rate
D) dividend

Question

Quizplus · Accepted Answer

The correct term is "exchange rate," which refers to the value of one currency for the purpose of conversion to another. In this context, ABC Corp. needs to know the exchange rate to determine how many U.S. dollars are needed to purchase an equivalent amount of Yang.

ABC Corp, a U