The ratio of foreign rates to domestic rates measured in the 39 same 39 currency is known as ........

Economics- Phase (I & II) Balance of Payment and Foreign Exchange Markets

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The ratio of foreign rates to domestic rates measured in the 'same' currency is known as:

Real exchange rate

Nominal exchange rate

Superfluous exchange rate

None of the above

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Explanation:

- Option 1: Real exchange rate

The real exchange rate measures the relative price of goods between two countries. It adjusts the nominal exchange rate for differences in price levels or inflation, so it's not just about rates in the same currency.

- Option 2: Nominal exchange rate

This is the correct answer. The nominal exchange rate is the rate at which one currency can be exchanged for another. It’s the simple ratio between foreign and domestic rates, both measured in the same currency, *without* adjusting for price levels.

- Option 3: Superfluous exchange rate

This is not a standard term in economics.

- Option 4: None of the above

Not applicable, since option 2 is correct.