The most common tool of analysis in international finance for measuring the average value of a currency relative to several other currencies is

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Exchange rate indexes are used to measure the average value of a currency relative to several other currencies. They are calculated by taking a weighted average of bilateral exchange rates, taking into account the importance of each currency in international trade. Cross exchange rates only measure the value of one currency relative to another specific currency, while bilateral exchange rates only measure the value of two currencies against each other. Therefore, option C is the best choice as it specifically addresses the question of measuring the average value of a currency relative to several other currencies.

The Most Common Tool of Analysis in International Finance for Measuring