Which of the following terms refers to the price of one nation's currency in terms of another nation's currency?
A) countertrade ratio
B) liquidity ratio
C) exchange rate
D) discount rate

Question

Quizplus · Accepted Answer

The exchange rate refers to the price of one nation's currency in terms of another nation's currency, which is determined by the market forces of supply and demand. Countertrade ratio and liquidity ratio are not related to currency exchange rates. The discount rate refers to the interest rate that is charged by central banks for loans to commercial banks.

Which of the Following Terms Refers to the Price of One