The nominal exchange rate:
A) is the amount of one country's goods that could be obtained with a basket of goods of another country.
B) is always expressed as units of a foreign currency per U.S. dollar.
C) is the rate that one can exchange the currency of one country for the currency of another country.
D) is a synonymous term for the swap rate.

Question

Quizplus · Accepted Answer

The nominal exchange rate is the rate that one can exchange the currency of one country for the currency of another country. It is often expressed as the amount of one country's currency that can be obtained for a unit of another country's currency.

The Nominal Exchange Rate