The ________exchange rate is the price of one unit of foreign currency in term of domestic currency

Options

A. artificial
B. nomial
C. fixed
D. real

Answer

2

Explanation

Nominal exchange rate is the relative price of a domestic currecny in terms of foreign currency for in stance if the dollar euro exchange is equal to 1.4 it means that to buy one unit of the european currency it produced in different countries as it expresses prices in a common currency