Chapter 8R, Problem 10MCQ

To determine

To find:

Term used to define the price in a foreign exchange market.

Explanation of Solution

The rate at which one currency will be swapped for another is known as the exchange rate. The majority of exchange rates are characterized as floating and fluctuate in response to market supply and demand.

Some exchange rates are set or linked to the value of the currency of a particular nation. Exchange rate fluctuations have an impact on businesses by altering the cost of materials imported from other nations and the demand for their goods among clients abroad.

Hence from the above we can conclude that the correct option is D.