A currency's spot exchange rate against every other individual currency is known as a ________ exchange rate,and the exchange rate that shows how a currency is changing relative to a group of other countries' currencies is known as a ________ exchange rate.

Question

Quizplus · Accepted Answer

According to the given definitions, the first exchange rate described is a bilateral exchange rate (as it is relative to one particular currency) and the second exchange rate is a multilateral exchange rate (as it is relative to a group of currencies). Therefore, Choice D is the correct answer.

A Currency's Spot Exchange Rate Against Every Other Individual Currency