Which term refers to the rate at which one currency is converted into another?
Definition. Rate at which one currency may be converted into another. The exchange rate is used when simply converting one currency to another (such as for the purposes of travel to another country), or for engaging in speculation or trading in the foreign exchange market.here are a wide variety of factors which influence the exchange rate, such as interest rates, inflation, and the state of politics and the economy in each country. also called rate of exchange or foreign exchange rate or currency exchange rate. DEFINITION of 'Exchange Rate'. The price of a nation’s currency in terms of another currency. An exchange rate thus has two components, the domestic currency and a foreign currency, and can be quoted either directly or indirectly.In a direct quotation, the price of a unit of foreign currency is expressed in terms of the domestic currency.n an indirect quotation, the price of a unit of domestic currency is expressed in terms of the foreign currency. An exchange rate that does not have the domestic currency as one of the two currency components is known as a cross currency, or cross rate. Exchange rate. The exchange rate is the price at which the currency of one country can be converted to the currency of another. Although some exchange rates are fixed by agreement, most fluctuate or float from day to day.he value of two currencies relative to each other. For example, on a given day, one may trade one U.S. dollar for a certain number of British pounds. A currency's exchange rates may be floating (that is, they may change from day to day) or they may be pegged to another currency. In finance, an exchange rate (also known as a foreign-exchange rate, forex rate, FX rate or Agio) between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency.xchange rates are determined in the foreign exchange market, which is open to a wide range of different types of buyers and sellers where currency trading is continuous: 24 hours a day except weekends, i.e. trading from 20:15 GMT on Sunday until 22:00 GMT Friday. The price of one currency expressed in terms of another currency. For example, if the U.S. dollar buys 1.40 Canadian dollars, the exchange rate is 1.4 to 1.he value of two currencies relative to each other. For example, on a given day, one may trade one U.S. dollar for a certain number of British pounds. A currency's exchange rates may be floating (that is, they may change from day to day) or they may be pegged to another currency. exchange rate. The price of one currency expressed in terms of another currency. For example, if the U.S. dollar buys 1.40 Canadian dollars, the exchange rate is 1.4 to 1. Changes in exchange rates have significant effects on the profits of multinational corporations.he value of two currencies relative to each other. For example, on a given day, one may trade one U.S. dollar for a certain number of British pounds. A currency's exchange rates may be floating (that is, they may change from day to day) or they may be pegged to another currency. European Union (EU) An economic group of 15 European nations: Austria, Belgium, Great Britain, Denmark, Finland, France, Ger-many, Greece, the Netherlands, Ireland, Italy, Luxem-bourg, Portugal, Spain and Sweden. exchange rate The rate at which one currency is converted into another.uropean Union (EU) An economic group of 15 European nations: Austria, Belgium, Great Britain, Denmark, Finland, France, Ger-many, Greece, the Netherlands, Ireland, Italy, Luxem-bourg, Portugal, Spain and Sweden. exchange rate The rate at which one currency is converted into another. There is no way to determine one currency's exchange rate. To find out what is the value of one currncy it has to be compare to another currency. For example, you can check w … hat is the exchange rate of the Cyprus currency (EUR) in comparison the US Dollar (USD). Currently the EUR/USD is worth 1.266.4 people found this useful.or example, you can check w … hat is the exchange rate of the Cyprus currency (EUR) in comparison the US Dollar (USD). The foreign exchange market is a market for converting the currency of one country into that of another country. When a tourist changes one currency into another, the tourist is participating in the foreign exchange market. If the euro/dollar exchange rate is €1=$1.30, then one euro buys 1.30 U.S. dollars.. (p. 326) A currency swap is the rate at which a foreign exchange dealer converts one currency into another on a particular day. FALSE. Difficulty: Easy. 9. (p. 326) When a tourist goes to a bank in a foreign country to convert money into the local currency, the exchange rate used is the spot rate. True / False Questions. 1. (p. 324) The foreign exchange market is a market for converting the currency of one country into that of another country. TRUE. Difficulty: Easy. 2. (p. 324) Currency fluctuations can make seemingly profitable trade and investment deals unprofitable and vice versa.. (p. 326) A currency swap is the rate at which a foreign exchange dealer converts one currency into another on a particular day. FALSE. Difficulty: Easy. 9. (p. 326) When a tourist goes to a bank in a foreign country to convert money into the local currency, the exchange rate used is the spot rate.
The exchange rate is the price at which the currency of one country can be converted to the currency of another.