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.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.Rates help to compare the supply and demand of goods traded between countries.
Answers
GPT-4o mini
The most relevant response to why foreign exchange rates are necessary in trade is:
**C**: Rates help to compare prices stated in foreign currency.
Foreign exchange rates allow traders to understand the value of one currency in relation to another, which is essential for comparing prices of goods and services across different currencies. This comparison is crucial for making informed decisions in international trade.
**C**: Rates help to compare prices stated in foreign currency.
Foreign exchange rates allow traders to understand the value of one currency in relation to another, which is essential for comparing prices of goods and services across different currencies. This comparison is crucial for making informed decisions in international trade.