Calculate the Nominal exchange rate considering the following data: Real exchange rate 25 Domestic price index 14070 Foreign price index 70 Choose…

CA Foundation · Business Economics · PYQS · January 2026
Calculate the Nominal exchange rate considering the following data: Real exchange rate 25 Domestic price index 14070 Foreign price index 70 Choose the correct answer from the following options:
(A) A. 50.0
(B) B. 12.5
(C) C. 40.0
(D) D. 35.0

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. 12.5

Topics: International Trade

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