Exchange Rate
Chapter 7: Chapter 7 · ECONOMICS · EN medium
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. . Meaning of Foreign Exchange (FOREX) FOREX refers to foreign currencies. The mechanism through which payments are effected between two countries having different currency systems is called FOREX system . It covers methods of payment, rules and regulations of payment and the institutions facilitating such payments. . . Definition of FOREX “FOREX is the system or process of converting one national currency into another, and of transferring money from one country to another”. . . Rate of Exchange The transactions in the exchange market are carried out at exchange rates. It is the external value of domestic currency.
📖 Class 12 Economics English Medium 2024 Edition www.tntextbooks.in · Page 147
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. . Meaning of Foreign Exchange (FOREX) FOREX refers to foreign currencies. The mechanism through which payments are effected between two countries having different currency systems is called FOREX system .
It covers methods of payment, rules and regulations of payment and the institutions facilitating such payments. . . Definition of FOREX “FOREX is the system or process of converting one national currency into another, and of transferring money from one country to another”.
. . Rate of Exchange The transactions in the exchange market are carried out at exchange rates. It is the external value of domestic currency.
Thus, exchange rate may be defined as the price paid in the home currency (say ₹ ) for a unit of foreign currency (say US $). It can be quoted in two ways: . One unit of foreign money ( USD) to so many units of the domestic currency (₹); or . A certain number of units of foreign currency (USD)to one unit of domestic money (₹ ) For instance:
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