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 most appropriate response is:
**C** Rates help to compare prices stated in foreign currency.
Foreign exchange rates are essential in trade because they allow businesses and individuals to convert currencies and understand the relative value of different currencies in terms of purchasing power. This comparison is crucial for pricing goods and services in international markets.
**C** Rates help to compare prices stated in foreign currency.
Foreign exchange rates are essential in trade because they allow businesses and individuals to convert currencies and understand the relative value of different currencies in terms of purchasing power. This comparison is crucial for pricing goods and services in international markets.