The foreign exchange market is a market for converting the currency of one country into that of another country. An exchange rate is simply the rate at which one currency is converted into another.

a. True

b. False

Question

Business

Aubrey Orozco

19 November, 12:24

The foreign exchange market is a market for converting the currency of one country into that of another country. An exchange rate is simply the rate at which one currency is converted into another.

a. True

b. False

+4

Answers (1)

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Precious Savage · Answer 1

"True"

Explanation:

True, because it is the exchange rate at which one currency is exchanged with other currency in the foreign exchange market. Here, this exchange rate is simply the price of one currency in terms of other currencies. For example, if a person wants 1 dollar against the INR then he must have to pay the prevailing exchange rate. Let's assume 1 dollar is equal to 70 INR then to exchange it with the dollar the person has to pay 70 INR for one dollars.

The foreign exchange market is a market for converting the currency of one country into that of another country. An exchange rate is simply the rate at which one currency is converted into another.a. Trueb. False

The foreign exchange market is a market for converting the currency of one country into that of another country. An exchange rate is simply the rate at which one currency is converted into another.

a. True

b. False