Question

The nominal exchange rate is the 

nominal interest rate in one country divided by the nominal interest rate in the other country. 

the ratio of a foreign country's interest rate to the domestic interest rate. 

rate at which a person can trade the currency of one country for another. 

the real exchange rate minus the inflation rate.

Answer 1

The nominal exchange rate is decided by the demand and supply of the interest rate in the market. That is the rate at which the person can trade the currency of one another, the answer is "C".