If 60 pesos can be exchanged for $5 in the foreign exchange market,which of the following represents the nominal exchange rate between the two currencies?

Question

Quizplus · Accepted Answer

To find the nominal exchange rate, we need to express the exchange rate in terms of how much of one currency we can get for one unit of the other currency. 
Since 60 pesos can be exchanged for $5, we can get 12 pesos for every $1. 
Therefore, the nominal exchange rate is 1 dollar for 12 pesos, which is option B.

If 60 Pesos Can Be Exchanged for $5 in the Foreign