Question

An exchange rate is used to

A) promote the argument supporting free trade.
B) promote the use of subsidies on foreign goods.
C) determine the price of one country's imports in terms of another country's imports.
D) determine the price of one country's currency in terms of another country's currency.

Answer 1

The correct answer is D. I just did this test.

Answer 2

The answer is D

Step-by-step explanation:

An exchange rate is used to determine the price of one country's currency in terms of another country's currency. Exchange rates help determine not only how much money you'll have to spend when you travel to another country, but the level and extent of trade between countries.