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AssignmentMultiple Choice

International Trade

Question 1 • IL-Economics

What is a currency exchange rate?

Answer
A
the money returned when a person overpays
B
the amount of a currency needed to account for a rise in inflation
C
the value of one currency in relation to another
D
a series of currency fluctuations over a period of time

Explanation

A currency exchange rate tells you how much one currency is worth in terms of another. For example, it can show how many euros one U.S. dollar can buy. So the correct choice is “the value of one currency in relation to another.”

AI-written and checked against the verified answer.

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