The Nominal Exchange Rate, E, Is Defined as the Number

question 87

Multiple Choice

The nominal exchange rate, e, is defined as the number of units of:

• A) domestic goods relative to the number of units foreign goods.
• B) foreign goods relative to the number of units of domestic goods.
• C) the foreign currency that one unit of domestic currency will buy.
• D) the domestic currency that one unit of foreign currency will buy.

---

Definitions:

Consideration

In contract law, it refers to something of value, such as money, services, or goods, exchanged between parties as part of an agreement.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to another if the latter has reasonably relied on that promise to their detriment.

Reasonable Reliance

A principle where a party acts based on the representation or promise of another, believing it to be true.

Bilateral Contract

An agreement involving two parties where each promises to perform an act in exchange for the other's act.