The price of one currency in terms of another is Select one: a

The correct option is b.

a) Foreign exchange market is the market place where buyers and sellers can exchange foreign currencies. This market determines the foreign exchange rate for currencies of the world. But it is not the price of the currency in terms of another currency.

b) Foreign exchange rate is the price of one currency in terms of another currency. It is the rate at which one currency will be exchanged for another currency. For example exchange rate for Euro is 132 yen. This means that a Euro can be purchased for 132 Yen.

c) Interest rate is the rate that a lender charges the borrower for using his assets. It is not the price of one currency in terms of another.

d) Inflation rate is the rate at which prices of goods and services is increasing in the economy, thus leading to falling of the value of the domestic currency. But it is not price of one currency in terms of another.