Select the statements that are true.

The amount of one currency that can be traded for a unit of another currency is the exchange rate.

Many exchange rates float, or constantly change.

It is best to travel abroad when the exchange rate gets you more units of a foreign currency.

Units of currency from different countries have the same value.

Question

Business

First Mate

5 May, 10:24

Select the statements that are true.

The amount of one currency that can be traded for a unit of another currency is the exchange rate.

Many exchange rates float, or constantly change.

It is best to travel abroad when the exchange rate gets you more units of a foreign currency.

Units of currency from different countries have the same value.

+1

Answers (1)

Know the Answer?

Ezekiel · Answer 1

The first three options are right

Explanation:

Exchange rate:

The "price or value of one country's currency" is exchanged for the price of "another country's currency value". The exchange rate always varies. It gets updated everyday. Exchange rates are calculated based on the value of "interest rate, trade, inflation, growth rate, employment and geopolitical conditions". There are two ways in which currency value is determined. A floating value is identified by the open market. We must travel to another country when we need more exchange rates.