The nominal exchange rate is the:

A. rate at which two currencies can be traded for each other.
B. quantity of foreign currency assets held by a government for the purpose of purchasing the domestic currency in the foreign exchange market.
C. price of the average domestic good or service relative to the price of the average foreign good or service, when prices are expressed in terms of a common currency.
D. market on which currencies of various nations are traded for one another.


Answer: A

Economics

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