The trade weighted index (TWI)is a measure of the:
A)difference between exports and imports, to establish the balance of trade on goods and services.
B)value of the Australian dollar against a basket of currencies of its major trading partners.
C)volume of international trade throughout the world.
D)price changes in goods and services traded between Australia and the rest of the world.

Question

Quizplus · Accepted Answer

The trade weighted index (TWI) is a measure of the value of the Australian dollar against a basket of currencies of its major trading partners. It is used to show the overall strength or weakness of the Australian dollar compared to other currencies and can be used by policymakers to monitor and manage exchange rate movements. Options A, C, and D are all incorrect as they do not describe the TWI.

The Trade Weighted Index (TWI)is a Measure of The