Exchange rates can indicate economic health by showing exactly how much of each nation’s currency is liquid. revealing how much of each nation’s income goes to savings. showing the relative strength of different nations’ currencies. examining spending patterns across nations and continents.

Your answer would be C). showing the relative strength of different nations’ currencies

A exchange rage is a value of one currency to another. For example, $1 in USD is equivalent to 0.88 Euros. The value of the currencies are pretty close, so they could be trustworthy. But, in places like china where there currencies are very small, it shows the struggles they have as a economy when dealing with money.

The answer is the third choice. Exchange rates can indicate economic health by showing the relative strength of different nations’ currencies.  

EXPLANATION:  

Exchange rates are one of the key factors that make a difference between the health of the economy of a country. Often known as a forex rate, one nation's currency value is the foreign exchange rate in comparison to the currency of another country. The economic data used to predict an exchange rate are the same as those used to determine a country's overall economic health. All of them are key determinants of the foreign exchange rates of a country.

•Gross Domestic Product (GDP)

A country's GDP is a measure of the dollar value of services and goods produced in that country, usually over a span of one year or period. GDP can also be called the basic size of the economy of the country. GDP changes reflect improvements in economic growth and can have a direct impact on the relative value of the currency of a nation.

•Consumer Price Index (CPI)

Another important measure for analysts and investors is the CPI, which is an index of price changes for a specified class of goods and services purchased within a nation by households. The CPI is often used to reflect inflation rates and monitor price fluctuations. An increase in CPI prices signals a weakening of the country's currency's purchasing power.

•Producer Price Index (PPI)

The PPI measures the overall price increase of all raw materials and products and addresses these shifts from the producer's point of view and not from the consumer's point of view. The PPI and PPI are interconnected – higher production prices are most frequently passed on to the costumers.  

•Employment Data  

Another indication of the exchange rate of a state are the employment data. Higher employment rates are typically a sign of higher demand for manufacturing the goods of the country, so it is a sign that the value of the currency of a country is higher.

•Interest Rates  

The final measure commonly used to predict a country's exchange rate is its central bank's interest rate. Investors are typically more attractive to a country proposing higher interest rates than a country proposing relatively lower rates.

LEARN MORE:  

If you’re interested in learning more about this topic, we recommend you to also take a look at the following questions:

1.Exchange rates indicate? (social studies college)

KEYWORDS: exchange rates, exchange rates indicate economic health by

Subject: History

Class: 10-12

Sub-chapter: Exchange rates  

to protect the united states' role as a world leader, president truman wanted to prevent the soviet union from spreading communism beyond its post-world war ii boundaries. he declared that the united states must assist any nations struggling to prevent a communist takeover.

an unexpected salary cut