Concept:The rate of exchange between exports and imports is known as the terms of trade.
Explanation:A country sells its exports abroad and buys imports from other countries.
The terms of trade show the amount of imports a country can obtain in return for a given amount of exports.
It is usually expressed as the ratio of export prices to import prices.
When export prices rise relative to import prices, the terms of trade improve.
This measure is different from the balance of trade, which compares only the money value of exports and imports.
The balance of payments records all economic transactions between a country and the rest of the world.
The current account covers trade in goods, services, income, and transfers.
Therefore, the exchange rate between exports and imports is correctly called the terms of trade.
Answer:C. term of trade