Exchange rates are an effective way to analyze the price of one currency in terms of another currency with _________________________.

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26-04-2022
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Exchange rates are an effective way to analyze the price of one currency in terms of another currency with _________________________.

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kanikabajaj294 kanikabajaj294 · Answer 1 · 2022-05-10T15:24:15+02:00

Exchange rates are an effective way to analyze the price of one currency in terms of another currency with the tools of demand and supply.

What do you mean by exchange rate?

Exchange rates refer to the value of one's nation's currency over the currency of another nation.

An exchange rate can be fixed or free-floating. A fixed exchange rate is pegged to the value of other currency and a free-floating exchange rate may rise or fall due to changes in the foreign exchange market.

Thus, exchange rates are an effective way to analyze the price of one currency in terms of another currency with the tools of demand and supply.

Learn more about the exchange rate here:

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