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Question
Statistics
Posted 6 months ago
In the foreign exchange market for the Mexican peso, which of the following would best describe the exchange rate for the peso?
Choose 1 answer:
(A) The interest given up by holding pesos
(B) The price of a peso in terms of some other currency
(C) The interest rate earned from saving pesos
(D) The price of a good in Mexico in terms of another goods in Mexico
(E) The price of a peso in terms of pesos
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Answer from Sia
Posted 6 months ago
Solution by Steps
step 1
Identify the correct definition of exchange rate in the context of foreign exchange markets
step 2
Review the given answer choices and eliminate those that do not match the definition of exchange rate
step 3
Recognize that the exchange rate is the price of one currency in terms of another currency
step 4
Select the answer choice that aligns with the recognized definition of exchange rate
Answer
B
Key Concept
Exchange Rate Definition
Explanation
The exchange rate is the price of one currency in terms of another currency.
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