In economics, an exchange rate describes: A. How quickly prices are rising in an international market.
B. The amount of currency available in fixed exchanges.
C. The total value of a country’s imports and exports.
D. How much one currency is worth compared to another.
In economics, an exchange rate describes:
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The correct answer is: D. How much one currency is worth compared to another.
An exchange rate is the price at which one currency can be exchanged for another. It indicates the relative value of currencies in international trade and finance, allowing for the conversion of one currency into another. This is crucial for activities such as trading, investing, and travel. If you have any more questions or need further clarification, feel free to ask!