Which type of exchange rate does NOT take into account the prices of goods across domestic and foreign markets?

The type of exchange rate that does not take into account the prices of goods across domestic and foreign markets is the nominal exchange rate. This exchange rate reflects the current rate at which one currency can be exchanged for another, based solely on market conditions at a given moment. It does not consider differences in the price levels between countries or how much goods and services cost in those countries.

In contrast, the real exchange rate adjusts the nominal rate to account for inflation and price levels in both countries, providing a clearer picture of the purchasing power and economic conditions. Fixed exchange rates are set by countries and do not fluctuate with market conditions, while market-based rates are determined through supply and demand dynamics. Understanding these distinctions is crucial for analyzing currency value and economic strength.