Exchange Rate
Definition
The price of one currency in terms of another. Floating rates move with supply and demand; fixed rates are pegged by a central bank.
Example
If €1 = $1.10, a euro buys $1.10 of US goods.
The price of one currency in terms of another. Floating rates move with supply and demand; fixed rates are pegged by a central bank.
If €1 = $1.10, a euro buys $1.10 of US goods.