The Price of One Currency Stated in Terms of Another

question 17

Multiple Choice

The price of one currency stated in terms of another currency is the:

• A)Current ratio.
• B)Exchange rate.
• C)Facilitating payment.
• D)International clearing price.

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Definitions:

Interest Rate

The percentage of principal charged by the lender for the use of its money.

Interest Rate

The fraction of a loan amount charged as interest to the borrower, often shown as an annual percent of the outstanding loan.

New Capital

Additional funds or assets put into a business by the owners or investors intended for the expansion or improvement of the enterprise.

Profits

The financial gain realized when the revenue from an economic activity exceeds the expenses, costs, and taxes involved in sustaining the activity.