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JAMB Economics 1979 Question 37

Question 37

Balance of Payments and Exchange Rates

The foreign exchange rate of a country is

  1. A.the interest rate fixed by the Central Bank
  2. B.the price of one national currency in terms of another
  3. C.the rate at which the Central Bank issues money
  4. D.the rate of interest on government bonds
  5. E.none of the above.
Show the answer and explanation

Answer: B (the price of one national currency in terms of another)

Explanation

An exchange rate is the price of one currency expressed in another currency.