The Nominal Exchange Rate Between Two Currencies Tells Us

question 147

Multiple Choice

The nominal exchange rate between two currencies tells us:

• A) changes in the exchange rate over time.
• B) how many units of one currency can be purchased with one unit of the home currency.
• C) how much in terms of goods and services the home currency will buy in the foreign nation compared with the home nation.
• D) how much depreciation or appreciation has occurred in the home exchange rate.

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