The Nominal Exchange Rate

question 71

Multiple Choice

The nominal exchange rate:

• A) is the amount of one country's goods that could be obtained with a basket of goods of another country.
• B) is always expressed as units of a foreign currency per U.S. dollar.
• C) is the rate that one can exchange the currency of one country for the currency of another country.
• D) is a synonymous term for the swap rate.

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Definitions:

Positive

Characterized by or displaying affirmation or acceptance; commonly used to describe a constructive or optimistic outlook.

Type A Behavior Pattern

A personality trait characterized by high levels of competitiveness, aggressiveness, impatience, and a sense of urgency, linked with an increased risk of heart disease.

Type B Behavior Pattern

A personality type characterized by less competitive, more relaxed, and less stress-prone behaviors than Type A.

External Locus of Control

A belief that outcomes in one's life are determined by external factors beyond one's control, as opposed to believing in the ability to influence outcomes through own efforts.