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CIPS Exam L3M1 Topic 2 Question 28 Discussion

Actual exam question for CIPS's L3M1 exam
Question #: 28
Topic #: 2
[All L3M1 Questions]

The price of one currency expressed in terms of another currency is called the:

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Suggested Answer: C

Exchange rate - the rate at which the currencies are exchanged. This rate can vary frequently, some-times several times per hour, depending on circumstances.

The interest rate is the rate charged on loans - the cost of borrowing.

The base rate is the basic interest rate used for agreeing loans within an economy. This rate is nor-mally set by the government or the central bank. Loans within that economy will usually be at a higher rate than the base rate, often much higher.

The equilibrium rate (more commonly 'equilibrium price') is the rate at which supply and demand meet, not necessarily related to currency.


by Rebecka at Jan 14, 2025, 11:40 PM

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Barbra
15 days ago
The exchange rate, without a doubt. What else would it be? Monopoly money?
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Rachael
3 days ago
Exactly, it's the exchange rate.
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Lashawnda
7 days ago
Exchange rate
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Evangelina
26 days ago
I agree with both of you. The exchange rate is crucial for international trade and investment.
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Freeman
26 days ago
C) Exchange rate. It's the fundamental unit of currency conversion in the global market.
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Jesusita
27 days ago
Hmm, I'd say it's the exchange rate. That's the standard way to express the value of one currency in terms of another.
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Mose
7 days ago
Yes, it's definitely the exchange rate. It's used in international trade and finance.
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Barrett
10 days ago
I agree, the exchange rate is the correct term for that.
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Stephanie
27 days ago
I think it's C too. It makes sense because it's about the price of one currency in terms of another.
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Yolande
1 months ago
C) Exchange rate
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Brandon
1 months ago
The exchange rate, of course! That's the basic concept of forex trading.
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Rebbecca
15 days ago
I agree, fluctuations in the exchange rate can have a big impact on your profits or losses.
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William
16 days ago
It's important to understand how the exchange rate can impact your investments.
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Jamie
20 days ago
I always keep an eye on the exchange rate when trading in the forex market.
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Demetra
1 months ago
Yes, you're right! The exchange rate is the price of one currency in terms of another.
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