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What is the basis of currency exchange rate?
It's basically the demand for the currency, which is determined by the economy of a country.
How does the exchange rate affect Britain?
Exchange rate is depends on the rate of that country currency rates and gold!
What is a exchange rate?
an exchange rate is how much country's currency is worth in term of anothers.
How is the currency brokerage rate determined?
The currency brokerage rate is determined using the EUR / USD exchange rate. Read more at daytrading.about.com/od/currencies/a/WhatAreCurrenci.htm
When a country experiences capital flight what is the effect on its interest rate and exchange rate?
interest rate decreases and exchange rate increases
What is the difference in how the exchange rate reflects the supply and demand for the currency between a flexible-exchange rate system and a fixed-rate exchange system?
Fixed Exhange-Rate System: currency system in which governments try to keep the values of their currencies constant against one another Flexible Exchange- Rate System: allows the exchange rate to be determined by supply and demand. With a flexible exchange- rate system, exchange rates need not fall into any prespecified range.
Explain using economic models how an exchange rate is determined under a floating exchange rate regime What are the factors that can cause an appreciation in exchange rates Malaysia has recently cha?
Exchange rates are determined through supply and demand. An increase in interest rates can appreciate an exchange rate as investors convert their money into that currency to take advantage of a higher return on their money.
What is the difference between a floating and a pegged exchange rate?
pegged exchange rate is officially fixed in terms of gold or any other currency in foreign exchange. Floating exchange rate is flexible rate in which value of currency is allowed to adjust freely determined by the supply & demand of foreign exchange
What is an exchange rate?
An exchange rate isthe price for which one currency is converted into anotherthe rate is determined by the supply and demand conditions of relevant currencies in the markettransaction of currency exchanges occurs int he foreign exchange markets.
what is the value of a country's currency is determined by Under the floating exchange rate system?
Under a floating exchange rate system, the value of a country's currency is determined by market forces, specifically supply and demand dynamics in the foreign exchange market. Factors influencing this include interest rates, inflation, economic stability, political events, and overall economic performance. As these elements change, they affect investor confidence and demand for the currency, leading to fluctuations in its value relative to other currencies.
How can exchange rates change to reduce wage differences between countries?
A fall in a country's exchange rate will lower its relative wage, and a rise in a country's exchange rate will raise its relative wage.Microeconomics
If the supply and demand for currency determines the exchange rates this is called?
floating
