In economics, an exchange rate describes how much one currency is worth compared to another. Thus the correct answer is A.
The value of the currency in one country in relation to another indicates the rate of exchange. When one currency of a country gets exchanged with another between the economic zones and is important in evaluating trade and capital flow dynamics.
This exchange rate will help to evaluate the values of different currencies as the interest rate is affected by the rate of exchange. The purchasing capacity of the consumer is affected by the falling exchange rate.
Therefore, option A how much one currency is worth compared to another is appropriate.
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