What is exchange rate?
1 answersQuestion asked ( July 27, 2009 , Shopping / Finance )
I’m working towards my bachelors degree in business administration. Can someone in simple terms help me understand what exchange rate is? I understand it impacts our day to day life and would like to know more about it.
Answers to : What is exchange rate...
Answer
The price of one currency in terms of other is called the exchange rate. Certain factors like economic growth, productivity, inflation and foreign exchange transactions influence the fluctuation of exchange rate.
Market based exchange rate change as and when value of either of the currencies change. The currency becomes more valuable when there is higher demand for it and vice versa. The currency quotations include base currency and quote currency which could be in direct and indirect terms.
For example – USD/GBP
USD is the base currency and GBP is the quote currency.
Comment to : What is exchange rate?
You are not logged in. Sign up or Log in