The Nominal Exchange Rate

question 95

Multiple Choice

The nominal exchange rate:

• A) is the price of a good in one country expressed in units of the same good in another country.
• B) is fixed by the central banks of countries.
• C) is the price of one country's currency stated in units of another country's currency.
• D) is adjusted once a year and is the price at which goods are traded.

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Definitions:

Distribution Intensity

The level of market coverage a product gets, ranging from intensive, selective to exclusive distribution, depending on the company's strategy.

Intensive Distribution

A strategy where a company aims to distribute its products as widely as possible, making them available at many outlets.

Selective Distribution

A distribution strategy where a product is sold at a limited number of outlets, to control availability and maintain the product's high-end image.

Exclusive Distribution

A distribution strategy where a supplier grants only one retailer or distributor the rights to sell a product within a particular geographic area.