ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What Is a Conversion Rate? A conversion rate is the ratio between two currencies, most commonly used in foreign exchange markets, which designates how much of one currency is needed to exchange for the equivalent value of another currency. Conversion rates fluctuate regularly for all currencies traded in forex markets.

Detailed explanation-2: -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.

Detailed explanation-3: -Foreign exchange, also known as forex, is the conversion of one country’s currency into another.

Detailed explanation-4: -An exchange rate is the rate at which one currency may be converted into another, also called rate of exchange of foreign exchange rate or currency exchange rate.

Detailed explanation-5: -The foreign exchange market is the market that converts the currency of one country into that of another country. The exchange rate is the rate at which one currency is converted into another.