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What is meant by foreign exchange? - Economics

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Question

What is meant by foreign exchange?

Short Answer
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Solution

The currency of one nation is typically acknowledged inside its borders, but it is usually not accepted in other nations. Therefore, if it is feasible to convert one country’s money into another, trade across states can occur. Foreign exchange refers to claims on foreign currencies that are receivable in those currencies, such as bank deposits, cheques, etc.

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Chapter 28: Foreign Exchange Rate - TEST QUESTIONS [Page 28.10]

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R. K. Lekhi and P. K. Dhar Economics [English] Class 12 ISC
Chapter 28 Foreign Exchange Rate
TEST QUESTIONS | Q A. 1. | Page 28.10
Frank Economics [English] Class 12 ISC
Chapter 22 Model Short Answer Questions
MODEL SHORT ANSWER QUESTIONS | Q 214. | Page 484
Frank Economics [English] Class 12 ISC
Chapter 15 Balance of Payments and Exchange Rate
TEST YOURSELF QUESTIONS | Q 26. | Page 296
R. K. Lekhi and P. K. Dhar Economics [English] Class 12 ISC
Chapter 28 Foreign Exchange Rate
EXAMINATION CORNER | Q 1. | Page 28.11
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