GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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UBOR
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Base rate
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Exchange rate
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Inter bank Call money rate
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Detailed explanation-1: -The nominal exchange rate is defined as the number of units of the domestic currency that can purchase a unit of a given foreign currency. The nominal effective exchange rate (NEER) is an unadjusted weighted average rate at which one country’s currency exchanges for a basket of multiple foreign currencies.
Detailed explanation-2: -Some of the major types of foreign exchange rates are as follows: 1. Fixed Exchange Rate System 2. Flexible Exchange Rate System 3. Managed Floating Rate System.
Detailed explanation-3: -In a currency union, one currency is issued which is legal tender in the union’s member countries. From the point of view of the currency union area, this currency is a domestic currency, and all other currencies are foreign currencies.