Which One of the Following Is Not True

question 226

Multiple Choice

Which one of the following is not true?

• A)An exchange rate is the price of one currency in terms of another.
• B)An exchange rate is the means by which the price of a good in one country is translated into the price to the buyer in another country.
• C)The cost of a foreign good in dollars will depend on the current exchange rate.
• D)The exchange rate will affect the willingness of foreign buyers and sellers to trade with each other.
• E)The exchange rate is the price of a currency in terms of another currency for exchanges of goods and services but not for financial transactions.

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