The exchange rate is the
A) opportunity cost of pursuing a nation's comparative advantage.
B) price of one country's currency expressed in terms of another country's currency.
C) ratio between imports and exports.
D) interest rate that is charged on risk-free international capital flows.

Question

Quizplus · Accepted Answer

The exchange rate is defined as the price of one country's currency expressed in terms of another country's currency, allowing for the exchange of currencies in international markets.

The Exchange Rate Is the