The price of one country currency in terms of other country currency is known as ____________

Key Points

• The exchange rate represents the value of one country's currency in terms of another country's currency.
• It is used in international trade, investments, and global financial markets.
• Exchange rates can be fixed (set by a country's central bank) or floating (determined by the market).
• Factors like inflation, interest rates, and economic stability influence exchange rates.

Additional Information

• Transfer Rate: This term is not directly related to currency conversion but may refer to the rate applied for transferring funds between accounts or locations.
• Buying Rate: This is the rate at which a currency dealer or financial institution buys foreign currency. It is generally lower than the selling rate.
• Selling Rate: This is the rate at which a currency dealer or financial institution sells foreign currency. It is generally higher than the buying rate.
• Exchange Rate: As defined in the question, it is the price of one currency in terms of another currency and is widely used in financial and economic contexts.