The nominal exchange rate is
A) the value of the U.S. dollar expressed in units of foreign currency per U.S. dollar.
B) the real exchange rate multiplied by the ratio of the U.S. price level to the foreign price level.
C) the relative price of U.S. produced goods to foreign produced goods.
D) a measure of the quantity of the nominal GDP of other countries that we get per unit of U.S. nominal GDP.

Question

Quizplus · Accepted Answer

The nominal exchange rate is the value of one currency expressed in terms of another currency (e.g. the value of the U.S. dollar expressed in units of foreign currency per U.S. dollar). It does not take into account differences in price levels or relative prices between countries.

The Nominal Exchange Rate Is