Question

______ rate is the price of one currency in terms of another. 

Options

• Nominal exchange rate

• Real exchange rate

• Both nominal exchange rate and real exchange rate

• None of the above

Answer 1

None of the above rates is the price of one currency in terms of another.

Explanation:

The price of one currency in terms of another is known as the nominal exchange rate. It's the amount of local cash needed to purchase one unit. of a different currency A rupee-dollar exchange rate, for example. A Rs 45 exchange rate signifies that it costs 45 rupees to purchase one dollar.