Exchange rates

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  • Exchange rates
    • What is the exchange rate
      • Exchange rates are the price of one currency in terms of other currency. For example 1$ costs 30 THB
    • Why are they needed
      • vThey are needed because different countries have different currency so to trade with another country they make their payments in another currency.
    • How are exchange rates determined
      • The price of a currency is determined by the supply and the demand, it is just like any other commodities.
      • For example if the Us started to demand more for the sterling, the price of ponds will rise
    • Factors that affect exchange rates
      • Untitled
      • FDI
      • The demand for exports

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