关于知识点

问题如下：

QuestionTo derive real exchange rates from nominal ones, it's necessary to account for:

选项：

A.GDP of both countries.

B.

Price indexes of both nations.

C.interest rates of both nations.

解释：

1. Incorrect because to determine real exchange rates, one must factor in the price indexes of both countries rather than their economic output. Real exchange rates are a measure often used to gauge shifts in the comparative purchasing power between two currencies. The process entails adjusting the nominal exchange rate based on the price indexes in both countries forming the currency pair.
2. Correct because real exchange rates are a measure frequently employed to observe the shifts in the relative purchasing power between two currencies. The formulation of these rates necessitates the adjustment of the nominal exchange rate by factoring in the price indexes in both nations of the currency tandem.
3. Incorrect because when determining real exchange rates, it's the price indexes of both countries, not their interest metrics, that matter. Real exchange rates serve as an instrument to analyze the alterations in the comparative purchasing power between two currencies. To construct these rates, the nominal exchange rate needs to be adjusted based on the price indexes in both countries involved in the currency duo.

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