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QuizMultiple Choice

Banking

Question 1 • * HSA 26-27 Economics

A currency’s exchange rate is

Answer
A
how many denominations the currency has.
B
its stable rate as established by the government.
C
how easily it can be divided into other currencies.
D
its changing value relative to other currencies.

Explanation

An exchange rate tells how much one currency is worth compared with another currency. Because this relative value can rise or fall over time, the correct choice is “its changing value relative to other currencies.”

AI-written and checked against the verified answer.

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