Investor Glossary-exchange rateInvestor Glossary-exchange rateInvestor Glossary-exchange rateInvestor Glossary-exchange rateInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Exchange Rate

The HTML to link to this page
 

Exchange rate is a price or ratio at which one nation's currency can be converted into that of another. Simply put, the exchange rate is how much of one denomination it takes to pay for another. The exchange rate for every currency is different. That means that exchange rate between the U.S. dollar and a Euro is different from that between the dollar and a Japanese Yen. An exchange rate is subject to various economic and market forces. Thus, a floating exchange rate may flow freely, exhibiting movement from day to day. Conversely, an exchange rate may be fixed, and therefore independent of market forces. A fixed exchange rate is influenced by the government or central bank, mainly for the purpose of procuring more stable international trade.



Rate this exchange rate definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: reverse mortgage, diluted share, stock market close, VIX, option premium, 401a, per diem, labor relations, deferred tax, inflation, current ratio, EBITDA, limit order, APR, retained earnings, balance sheet, wholly-owned subsidiary, phantom income, 1031 exchange, average price per share, class C shares, LIBOR, deferred revenue, in escrow, command economy, quality assurance, real GDP, covered put, Zero Cost Collar, minority interest, open position, Key Rate Duration, margin rate, ex-dividend, cancelled check, FICO score, stock split, liquidity ratio, 1035 exchange, dividends payable, 144a, annual return, FTSE, debt service coverage, implied volatility, risk management, irrevocable trust, required rate of return, ex-dividend date


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use