Question

Exchange rate is the value of a currency expressed in terms of ______.

Options

• gold

• another currency

• metal

• none of these

Answer 1

Exchange rate is the value of a currency expressed in terms of another currency.

Explanation:

The foreign exchange rate represents the price of one nation's currency stated in units of another country’s currency (such as expressing 1 USD in terms of INR). While currencies were historically tied to metals like gold under older monetary systems, modern floating exchange rates are determined strictly by cross-currency supply and demand in the global forex market.