An index that estimates the true rate of exchange among currencies is called:

91

A. Human Development Index

B. Exchange Rate

C. Purchasing Power Parity

D. None of these

Explanation:

The real effective exchange rate (REER) compares a nation’s currency value against the weighted average of the currencies of its major trading partners. It is an indicator of the international competitiveness of a nation in comparison with its trade partners.

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