An exchange rate is a rate at which one currency can be exchanged for another. In other words, it is the value of another country's currency compared to that of our own. If we are travelling to another country, we need to "buy" the local currency.

The Mechanism of Foreign Exchange - Applied Economics

In this “The Mechanism of Foreign Exchange - Applied Economics” you will learn about following topics:

  1. Introduction to the Mechanism of Foreign Exchange
  2. The Determination of the Rate of Foreign Exchange
  3. Demand for Foreign Exchange (Currency)
  4. Supply of Foreign Exchange
  5. Determination of Exchange Rate
  6. Change in Exchange Rate
  7. The Adjustable ‘Peg’ System
  8. Fixed Exchange Rates
  9. Advantages of Fixed Exchange Rates
  10. Floating Exchange Rates
  11. Advantages of Floating Exchange Rates
  12. Types of Exchange Rate System

==== Point to Note ====

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BCA 6th Semester Applied Economics Notes Pdf: