BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is a price at which Foreign money is exchanged at counters.
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It is the price at which one country’s currency is expressed in another country’s currency.
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It is the price at which Foreign materials are purchased or sold.
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All of the above
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Detailed explanation-1: -Which of the following best defines the meaning of Exchange rate? Answer: [B] It is the price at which one country’s currency is expressed in another country’s currency. Notes: Exchange Rate is the price of one country’s currency expressed in another country’s currency.
Detailed explanation-2: -An exchange rate is a rate at which one currency will be exchanged for another currency. Most exchange rates are defined as floating and will rise or fall based on the supply and demand in the market. Some exchange rates are pegged or fixed to the value of a specific country’s currency.
Detailed explanation-3: -The price of one currency in terms of another is called the exchange rate.
Detailed explanation-4: -Exchange rates are defined as the price of one country’s’ currency in relation to another country’s currency. This indicator is measured in terms of national currency per US dollar.