MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Foreign Exchange and Exchange Rate

Whenever some...

Question

Whenever somebody needs foreign currency against Indian Rupee, banks give equivalent amount of desired currency based on the prevalent _______.

A

Bank rate

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

Currency rate

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

Policy rate

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

Exchange rate

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is B Exchange rate
Exchange Rate: In finance, an exchange rate (also known as foreign-exchange rate, forex rate or FX rate) between two currencies is the rate at which one currency will be exchanged for another.

Suggest Corrections

thumbs-up

2

Similar questions

Q. The exchange ratio of a certain foreign currency with the Indian Rupee is 1 to 62 point 50 how much of the foreign currency can be bought for rup yhees 3125 mo

Q. An international bank issues its Traveler credit cards worldwide. When a customer makes a purchase using a Traveler card in currency different from the customer's home currency, the bank converts the purchase price at the daily foreign exchange rate and then charges a

4

% fee on the converted cost.
Sara lives in the United States, but is on vacation in India. She used her Traveler card for a purchase that cost

602

rupees (Indian currency). The bank posted a charge

t o h e r a c c o u n t t h a t i n c l u d e d t h e

4$% fee.
What foreign exchange rate, in Indian rupee per one U.S dollar, did the bank use for Sara's charge? Round your answer to the nearest whole number.

Q. To correct balance of payments, the rupee was _______ against foreign currencies.

Q. Which of the following functions of a bank make it eligible to exchange Indian currency with any other currency?

Q. Q. Consider the following statements:Which of the statements given above is/are correct?

1 only
2 only
Both 1 and 2
Neither 1 nor 2

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Foreign Exchange

ECONOMICS

Watch in App

explore_more_icon

Explore more

Foreign Exchange and Exchange Rate

Standard XII Economics

Join BYJU'S Learning Program

CrossIcon