A question for my college Economics Class?
Question: The foreign exchange market is the market where US dollars and other currencies are bought and sold, and where exchange rates are determined. Explain how the exchange rate can be understood as the price of a dollar.
Japanese want to buy American jet fighters from Boeing. Boeing wants dollars for them, since that’s what it pays to it’s workers and suppliers. Japanese do not have dollars, they have yen. So they exchange yens for dollars. They give 100 yen for each dollar they receive. So you can say that they buy dollars at a price of 100 yen each.
No, that is a B.S. request.
Your questions wording gives the impression that you are an instructor in Economics. If you are why are you proposing asking such a jerky question? Will this help your students in completing tasks at work?