When international transactions occur, _______________ is the monetary mechanism that allows the transfer of funds from one nation to another.
A) foreign exchange
B) regional exchange
C) international exchange
D) global exchange
E) local exchange

Question

Quizplus · Accepted Answer

Foreign exchange is the monetary mechanism that allows the transfer of funds from one nation to another. It involves converting one currency into another at an agreed exchange rate. It facilitates international trade and investments by enabling businesses to pay for imports and receive payments for exports in their own currency or the currency of their trading partner.

When International Transactions Occur, _______________ Is the Monetary Mechanism That