Question
Why are foreign exchange rates necessary in trade?
Responses
A Rates help to balance imports and exports.Rates help to balance imports and exports.
B Rates help ensure cultural exchanges across borders.Rates help ensure cultural exchanges across borders.
C Rates help to compare prices stated in foreign currency.Rates help to compare prices stated in foreign currency.
D Rates help to compare the supply and demand of goods traded between countries
Responses
A Rates help to balance imports and exports.Rates help to balance imports and exports.
B Rates help ensure cultural exchanges across borders.Rates help ensure cultural exchanges across borders.
C Rates help to compare prices stated in foreign currency.Rates help to compare prices stated in foreign currency.
D Rates help to compare the supply and demand of goods traded between countries
Answers
GPT-4o mini
The correct response is **C**: Rates help to compare prices stated in foreign currency.
Foreign exchange rates are essential in trade as they allow businesses, governments, and individuals to convert one currency into another and understand the value of goods and services priced in different currencies. This enables them to make informed decisions about purchasing, selling, and investing across borders.
Foreign exchange rates are essential in trade as they allow businesses, governments, and individuals to convert one currency into another and understand the value of goods and services priced in different currencies. This enables them to make informed decisions about purchasing, selling, and investing across borders.