The nominal exchange rate between the U.S. dollar and the Japanese yen is the:
A) number of yen you can get for lending one dollar in Japan for one year.
B) number of yen you can get for one dollar.
C) price of U.S. goods divided by the price of Japanese goods.
D) price of Japanese goods divided by the price of U.S. goods.

Question

Quizplus · Accepted Answer

The nominal exchange rate is defined as the amount of foreign currency that can be purchased with one unit of domestic currency. In this case, the question asks for the nominal exchange rate between the U.S. dollar and the Japanese yen, so the answer is the number of yen you can get for one dollar.

The Nominal Exchange Rate Between the U