A bilateral exchange rate is an exchange rate:
A) that has two sides: maximal and minimal.
B) that has exhibited both appreciation and depreciation.
C) that is a hybrid between fixed and floating.
D) between two currencies.

Question

Quizplus · Accepted Answer

A bilateral exchange rate is a rate between two currencies, indicating how much of one currency is needed to buy a unit of the other currency. It does not refer to the maximal or minimal exchange rate, nor is it a hybrid between fixed and floating. While a bilateral exchange rate may exhibit appreciation or depreciation over time, this is not a defining characteristic of the exchange rate itself.

A Bilateral Exchange Rate Is an Exchange Rate