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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

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B

Currency rate

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C

Policy rate

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D

Exchange rate

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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.

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