contestada

How does the exchange rate for a country's currency affect its terms of
trade?
A. A higher exchange rate for the country's currency can lead to more
favorable terms of trade,
B. Favorable terms of trade are required for a country to trade wh
wealthy partners
C. A higher exchange rate for the country's currency can lead to
deteriorating terms of trade,
D. Deteriorating terms of trade prevent a country from using its
currency for trade,

Respuesta :

Answer:

A. A higher exchange rate for the country's currency can lead to more

favorable terms of trade

Explanation:

Just got it right!

The exchange rate of a nation's currency affects the trading terms in such a way that the greater exchange rate leads to favorable trade between countries.

Option A is the correct answer.

What is meant by trading?

Trading is the acquisition or disposal of goods or services by the countries with the outside countries.

The exchange rate is the rate that is used to convert the value of one currency into the value of the foreign currency. If the rate is higher, then the trading between the countries is more favorable whereas the trading becomes unfavorable if the rate is lower.

Therefore, the higher rate of exchange provides favorable trade which considers one of the effects of the exchange rate over trade.

Learn more about the exchange rate in the related link:

https://brainly.com/question/13717814

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