Understanding Foreign Exchange Rate Definition
The price of one currency expressed in terms of another currency is known as the foreign exchange rate. This rate indicates how much of one currency is needed to purchase a unit of another currency.
Analyzing the Options
- Foreign Exchange Rate: This is the correct term for the value of one currency relative to another. It's the standard definition in international finance and economics.
- Export/Import Exchange Rate: These terms are too specific and don't represent the general definition. While related to the overall exchange rate, they aren't the primary definition.
- International Currency: This refers to a currency widely used in international trade and finance (like the US dollar or Euro), not the rate at which currencies are exchanged.
Therefore, the most accurate and standard term is the foreign exchange rate.
Similar Questions
- The reduction in the external value of the domestic currency is called:
- The money invested by foreign MNC's is known as:
In the Balance of Payments, an increase in foreign exchange reserves appears under which category?
The Foreign Exchange Management Act (FEMA) was enacted in 1999 to replace the earlier FERA law. In which year did FEMA officially come into force?
Important Questions from External Sector and Currency Exchange rate
As per the data up to November, 2020, released by the Union Finance Ministry, which one of the following countries ranks 1 in terms of ODI (Outward Direct Investment) for the year 2020-21?
Which of the following is/are not FDI policy change(s) alter 2010?
1. Permission of 100 per cent FDI in the automotive sector
2. Permitting foreign airlines to make FM up to 49 per cent
3. Permission of up to 51 per cent FDI under the government approval route in multi-brand retailing, subject to specified conditions
4. Amendment of policy on FDI in single-brand product retail trading for aligning with global practices
Select the correct answer using the code given below:The Defence Technology and Trade Initiative (DTTI) is a forum for dialogue on defence partnership between India and
As per the policy applicable in 2017, how much Foreign Direct Investment (FDI) is permitted in the defence sector in India?
Which one of the following continents accounts for the maximum share in exports from India?
