The nominal exchange rate is
A) the rate which banks charge the least risky businesses.
B) the rate which District Federal Reserve Banks charge member banks.
C) the rate at which the goods and services purchased in different countries can be exchanged one for another.
D) the rate at which the monies of different countries can be exchanged one for another.

Question

Quizplus · Accepted Answer

The nominal exchange rate is the rate at which the currencies of different countries can be exchanged for one another. It is a measure of how much of one currency can be exchanged for a unit of another currency.

The Nominal Exchange Rate Is