Exchange Rate Flashcards
1
Q
Exchange Rates
A
The price of one currency in terms of another
2
Q
Real exchange Rate
A
thsi is the ratio of domestic P indices between two countries.
3
Q
Spot exchange Rate
A
the spot rate is the rate for a currency at today’s market P’s
4
Q
Foward Exchange rate
A
a forward rate involves the delivery of currency at a specified time in the future at an agreed rate. Companies wanting to reduce risks from exchange rate volatility can buy their currency foward on the market
