The exchange rate is
A)the rate of return in the stock market.
B)the price index for goods and services.
C)the price of Canadian dollar in terms of foreign currencies.
D)the rate of return on investment in foreign countries.

Question

Quizplus · Accepted Answer

The exchange rate refers to the price of one currency in terms of another currency. In this case, it is the price of the Canadian dollar in terms of foreign currencies. Choices A, B, and D are incorrect as they do not accurately describe the concept of exchange rate.

The Exchange Rate Is