Category: 6. Open Economy Macroeconomics

What is Foreign Exchange Market? Every nation has a unique currency that it uses for commerce and business, in India, it’s Indian Rupee, but what about the global market? The lack of flexibility of the currencies makes them a barrier to international trade. The Foreign Exchange Market was formed to solve this problem. This is…

What is Foreign Exchange? Foreign exchange refers to foreign currency. For example, for an Indian resident Indian rupee(₹) is a domestic currency that can be used as a medium of exchange in India. But the Indian rupee (₹) can not be used as a medium of exchange outside India. The currency used in other countries is treated…

What is Foreign Exchange? Foreign exchange refers to foreign currency. For example, for an Indian resident, the Indian rupee (₹) is a domestic currency that can be used as a medium of exchange in India. But the Indian rupee (₹) can not be used as a medium of exchange outside India. The currency used in other countries…

What is Foreign Exchange Rate? The foreign exchange rate is the rate at which one country’s currency can be exchanged for another country’s currency. Foreign exchange rates are influenced by various factors, including supply and demand dynamics in the foreign exchange market, economic indicators, geopolitical events, and central bank policies. For example, the Indian rupee…

What is Currency Depreciation? It refers to the decrease in the value of the domestic currency (₹) in terms of one or more foreign currencies (like $). It makes domestic currency less valuable and more is required to buy a unit of currency. For example, if the price of $1 rises from ₹60 to ₹64, then it…

What is Foreign Exchange Rate? A medium of exchange for goods and services is called currency. In a nutshell, it is money issued by governments and accepted for payment in the country. It comes in the form of coins and paper. Every nation has a currency that is widely accepted within its boundaries. For example, the Indian…