Question

the number of units of one currency that must be exchanged for a unit of the second currency is known as the ______ between the currencies.

• tariff exchange
• balance of trade
• trade deficit
• exchange rate

Explanation:

• "Tariff Exchange" is not a standard term related to currency exchange. Tariffs are taxes on imports/exports.
• "Balance of Trade" refers to the difference between a country's exports and imports of goods, not currency exchange rates.
• "Trade Deficit" occurs when imports exceed exports, also not related to currency exchange rates.
• "Exchange Rate" is defined as the number of units of one currency needed to exchange for a unit of another currency.

Answer:

D. Exchange Rate