The price of one​ country's currency in terms of another​ country's currency is known as the​ _____. A. money exchange B. currency fluctuation C. balance of payment D. dollar rate E. exchange rate

Respuesta :

Answer:

E. exchange rate

Explanation:

The exchange rate, also known as foreign exchange, is the price of a country's currency in relation to currencies of other countries. The exchange rate value is expressed in relation to the value of another currency. The exchange rate value fluctuates depending on factors such as the prevailing economic condition in the country, and the demand and supply of the currency in foreign exchange markets.

The exchange rate is a critical factor in international trade. A strong currency symbolizes a healthy economy, but it also makes a country exports expensive. For such reason, governments analyses and manipulates the exchange rate to favor their economic objectives.

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