Which of the following is the best definition of the exchange rate?
A) The price at which the government translates the currency of another country
B) The price at which imports are traded for imports in the stock exchange
C) The price of one currency in terms of another in the foreign exchange market
D) None of these

Question

Quizplus · Accepted Answer

The exchange rate is the price of one currency in terms of another in the foreign exchange market. It represents the value of one country's currency in relation to another country's currency. Option A does not accurately describe the exchange rate, while Option B includes the stock exchange, which is not directly related to the foreign exchange market. Option D is incorrect as there is a valid definition for the exchange rate.

Which of the Following Is the Best Definition of the Exchange