ECONOMICS
FOREIGN CURRENCY MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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£1800
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£2813
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£2250
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None of the answers
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£1700
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Detailed explanation-1: -Calculate an FX rate using this simple formula: Your starting figure (in your local currency) divided by the final number (in the new foreign currency) = the exchange rate.
Detailed explanation-2: -So you might also see an exchange rate expressed as: EUR/USD = 1.2. This means that one unit of the first currency (in this case, euros) is equal to the specified number of units in the second currency (in this case, U.S. dollars). So 1 euro equals $1.20, just as in the labeled currency example.
Detailed explanation-3: -Definition: Exchange rate is the price of one currency in terms of another currency. Description: Exchange rates can be either fixed or floating.
Detailed explanation-4: -Foreign Exchange Rate is defined as the price of the domestic currency with respect to another currency. The purpose of foreign exchange is to compare one currency with another for showing their relative values.