the market in which national currencies are traded for one another is known as the ______
Answers
Explanation:
An exchange rate is the value of a country's currency vs. that of another country or economic zone. Most exchange rates are free-floating and will rise or fall based on supply and demand in the market.
Answer:
Foreign exchange market
Explanation:
In foreign exchange market, currency of one country is exchanged or converted into another currency of country.
The rate at which one currency convert into another currency is called foreign exchange rate.
Foreign exchange rate are classified into three types:
1. Fixed foreign exchange rate - In this currency exchanged is fixed by government of country.
2. Flexible foreign exchange- In this. rate of currency is determined by market force of demand and supply.
3. Managed floating foreign exchange- in this, RBI and Market force both determined currency rate
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