ENTREPRENEURSHIP

Detailed explanation-1: -A multitude of factors, including supply and demand, interest rates, and various economic conditions, determines the value of a spot exchange rate. The expected future spot exchange rate can be calculated by multiplying the ratio of interest rates ( foreign/ domestic) with the current spot rate.

Detailed explanation-2: -1. The spot exchange rate is the rate at which a foreign exchange dealer converts one currency into another currency on a particular day.-Spot rates change continually depending on the supply and demand for that currency and other currencies.

Detailed explanation-3: -Exchange rates are constantly moving, based on supply and demand. Whether one currency is in higher demand than another, depends on the perceived value of owning it, either to pay for goods and services, or as an investment.