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Term

EXCHANGE RATE
raagvamd

This is a formal measure of the value of one currency against another. It indicates how many units of one currency are needed to buy one unit of another currency. This is the rate at which currencies are traded in the international market.

Example: If the exchange rate between US Dollar and Indian Rupee is 40, it means that Rs. 40 are needed to buy 1 US Dollar.

Related Terms: Purchasing Power Parity, Big Mac Index
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