ECONOMICS (CBSE/UGC NET)

ECONOMICS

BALANCE OF PAYMENTS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Price of one currency in relation to other currencies in the international market is known as:
A
Equilibrium rete
B
Fixed exchange rate
C
Exchange rate
D
Flexible exchange rate
Explanation: 

Detailed explanation-1: -Correct answer is Foreign exchange rate. The exchange rate is the price of one currency in terms of another currency. Exchange rates can be either fixed or floating. Fixed exchange rates are decided by central banks of a country whereas floating exchange rates are decided by the mechanism of market demand and supply.

Detailed explanation-2: -Exchange rate refers to the price of foreign currency in terms of the domestic currency.

Detailed explanation-3: -The exchange rate is the price of one currency in terms of the other.

Detailed explanation-4: -A currency swap, sometimes referred to as a cross-currency swap, involves the exchange of interest-and sometimes of principal-in one currency for the same in another currency.

There is 1 question to complete.