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How currency rate is defined?

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Anonymous

13y ago
Updated: 8/17/2019

By the amount of resources the nation has

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Wiki User

13y ago

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How is the term valuta properly defined?

Vauvta relates to currency and the exchange rates. For example, the valuta is the rate of one currency, such as the American Dollar to another country's currency, such as the Euro. It is Latin for the word "value".


Can be best defined as the ratio at which one nation's currency can be exchanged for another nation's currency?

The exchange rate can be best defined as the ratio at which one nation's currency can be exchanged for another nation's currency. It determines how much of one currency you can obtain with a unit of another currency, influencing international trade and investment. Exchange rates can fluctuate based on various economic factors, including interest rates, inflation, and political stability.


How the rate of currency is fixed?

The rate of currency is usually fixed based on the stock exchange.


What are exchangs rates?

Exchange rate is the rate at which one currency is exchanged for another.It is the price of one currency in terms of another currency.


How can I find the currency exchange rate for a specific currency?

You can find the currency exchange rate for a specific currency by checking financial websites, using currency converter apps, or contacting banks or currency exchange services.


What is the relationship between Interest rate parity with exchange rate?

Exchange rate is the rate at which one country's currency is changed for another country's currency. For example the rate at which one dollar can be changed for pound sterling or any other currency.


Define exchange rate?

EXCHANGE RATE IS THE RATE AT WHICH ONE COUNTRY'S CURRENCY IS CHANGED FOR ANOTHER COUNTRY'S CURRENCY. FOR EXAMPLE THE RATE AT WHICH ONE DOLLAR CAN BE CHANGED FOR POUND STERLING OR ANY OTHER CURRENCY.


How can one effectively short a currency?

To effectively short a currency, an investor borrows the currency at a certain exchange rate, sells it at that rate, and then buys it back at a lower rate to repay the loan. This allows the investor to profit if the currency's value decreases.


What is a currency whose value is determined by the supply and demand for the currency in the market?

Pegged currency ^For me on apex 2022 :)


What is the current dollar for foreign currency rate?

Against what currency?


How do changes in interest rates inflation productivity and income affect exchange rates?

Some countries simply allow the exchange rate to be determined by demand and supply. Some countries attempt to keep the exchange rate between their currency and another currency constant. When countries agree to keep the value of their currencies constant, there is a fixed exchange and is called exchange rate system. Exchange rate or value of a currency is defined by its supply and demand factors. If a country has high interest rate, that will attract more investors to buy that currency to invest (increase in demand for the currency). If inflation is high, the value of the currency decreases over time and therefore not attractive to hold (decrease in demand). If the country has high productivity and does a lot of exports, foreigners will need to buy currency in order buy the goods (increase in demand).


What is the rate at which one currency is converted to another currency called?

I believe you're looking for the term "exchange rate."