ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What’s the Spot Exchange Rate? The spot exchange rate is the price (set by the forex market) at which you can buy a currency today. Think of it as buying on the spot. The settlement date for your transaction will take place two business days later (for the majority of currencies).

Detailed explanation-2: -You can get better rates by ordering foreign currency from your local bank or credit union before you start your trip. Correct! Banks and credit unions generally offer the best exchange rates, and many won’t charge extra fees to exchange currency. Remember to order the foreign currency before you start your trip.

Detailed explanation-3: -You may be able to get foreign currency in cash at your local bank branch, or you can order currency online or by phone to be delivered to your home. Depending on your bank, where you live and which country’s currency you need, some currencies may be available for same-day exchange.

Detailed explanation-4: -Local banks and credit unions usually offer the best rates. Major banks, such as Chase or Bank of America, often offer the added benefit of having ATMs overseas. Online bureaus or currency converters, such as Travelex, provide convenient foreign exchange services.

Detailed explanation-5: -You can bring into India foreign exchange without any limit. If, however, the value of foreign currency in cash exceeds US$ 5, 000 and/or the cash plus TCs exceed US$ 10, 000 it should be declared to the customs authorities at the airport in the currency declaration form (CDF), on arrival in India.