The Real Exchange Rate Is The

Multiple Choice

The real exchange rate is the:

A) price of the average domestic good or service relative to the price of the average foreign good or service, when prices are expressed in terms of a common currency.
B) quantity of foreign currency assets held by a government for the purpose of purchasing the domestic currency in the foreign exchange market.
C) rate at which two currencies can be traded for each other.
D) nominal exchange rate adjusted for domestic inflation.