Exchange Rate is referred to the price of a particular currency is comparison to a foreign currency. Put it simply, it is the rate at which exchange of currency takes place from one country to another through the foreign exchange market. There are two basic concepts involved in the study of exchange rate and they are; comparison of international costs and prices and analyzing the direction and flow of foreign trade. There are many types of exchange rate such as, fixed exchange rate, high exchange rate, low exchange rate and demand exchange rate.

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