Question

what is market rate of exchange
economics class 11
this que is of which chapter​

Answer 1

Answer:

in main market supply and demand

Answer 2

In simple term,rate of exchange in market refers to the estimation of a currency of one country in terms of the currency of another nation.

Explanation:

In International Trade and Finance,market rate of exchange has an integral implication.Any good or service exchanged in international market based on the rate of market exchange of the currencies concerned.Now market rate of currency can be either governed freely by market forces if the currency exchange market is unregulated or stipulated by the government officials or central bank if the market is regulated.In unregulated exchange market,the currency exchange rate is determined by the demand and supply of the goods and services that are bought and sold in the international/foreign market but in the fixed or regulated market,the currency exchange rate is usually stipulated or fixed by the government of the respective countries possibly to ensure market stability and avoid any expected or unrestrained fluctuations in currency value.