ECONOMICS
FOREIGN CURRENCY MARKETS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Price in one country in relation to other currencies in the international exchange market is known as-
|
|
equilibrium rate
|
|
|
fixed exchange rate
|
|
|
exchange rate
|
|
|
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.
There is 1 question to complete.