The Exchange Rate Is

question 54

Multiple Choice

The exchange rate is:

• A)the price of foreign exchange determined by the interaction of supply and demand.
• B)an interest rate for foreign loans determined by the interaction of supply and demand.
• C)fixed by each government separately.
• D)always fixed for any two currencies by the two nations involved,regardless of any agreements made with other nations.
• E)fixed by GATT.

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Definitions:

Extremes

Conditions or situations that are significantly different from the norm or average, usually at opposite ends of a spectrum.

Heat

The form of energy that is transferred between systems or objects with different temperatures, flowing from high to low.

Cold

A viral infectious disease of the upper respiratory system, characterized by a running nose, sore throat, cough, and sneezing.

Conifers

A class of cone-bearing seed plants, mostly evergreens, that includes pines, spruces, and firs, characterized by needles or scale-like leaves.