Question

what do you understand by exchange rates

Answer 1

HERE IS YOUR ANSWER.....
Exchange rates are the amount of one currency you can exchange for another. For example, the dollar's exchange rate tells you how much a dollar is worth in a foreign currency. For instance, if you traveled to the United Kingdom on June 19, 2017, you would only receive 0.77 pounds for your one U.S. dollar. You would get a little less than the exchange rate as the banks charge their service fee. Conversely, a pound was worth $1.29.
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Answer 2

Exchange rate is the price of one currency in terms of another currency. Description: Exchange rates can be either fixed or floating. Fixed exchange rates are decided by central banks of a country whereas floating exchange rates are decided by the mechanism of market demand and supply.