What is exchange rate?
Understand the Problem
The question is asking about the concept of an exchange rate, which refers to the value of one currency in relation to another currency. It involves understanding how currencies are valued against each other and the factors that influence these valuations.
Answer
The value of one nation's currency compared to another nation's currency.
An exchange rate is the value of one nation's currency in comparison to the currency of another nation or economic zone.
Answer for screen readers
An exchange rate is the value of one nation's currency in comparison to the currency of another nation or economic zone.
More Information
Exchange rates can be categorized as free-floating or fixed. Free-floating rates fluctuate based on market forces, while fixed rates are pegged to another currency.
Sources
- Exchange Rates: What They Are, How They Work, and Why They Matter - investopedia.com
- Exchange rates - OECD - oecd.org
AI-generated content may contain errors. Please verify critical information
