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Which of the Following Equations Correctly Represents the Nominal Exchange

Question 18

Multiple Choice

Which of the following equations correctly represents the nominal exchange rate?


A) Nominal exchange rate = Units of foreign currency/1 unit of domestic currency
B) Nominal exchange rate = Units of foreign currency/100 units of domestic currency
C) Nominal exchange rate = 1 unit of domestic currency/100 units of foreign currency
D) Nominal exchange rate = 100 units of domestic currency/1 unit of foreign currency

Correct Answer:

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