The Price of One Currency Stated in Terms of Another

question 59

Multiple Choice

The price of one currency stated in terms of another currency is called a(n) :

• A) Foreign exchange rate.
• B) Currency transaction.
• C) Historical exchange rate.
• D) International conversion rate.
• E) Currency rate.

---

Definitions:

Demand for Leisure

The desire for free time in which one can enjoy personal activities outside of work.

Labor Supply Curve

A graphical illustration of the relationship between the wage rate and the quantity of labor workers are willing to supply at various wage rates.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute one good for another.

Income Effect

The change in consumers' purchasing power and consequently the quantity demanded of a good or service, prompted by a change in real income.