Countries adopt different methods to fix exchange rates for their currencies. A nation's policy largely determines how exchange rates are set in a free market.
For CA Exams , understanding exchange rates and their daily, even hourly, fluctuations is essential. Exchange rates dictate how many units of one currency can be exchanged for another. Despite the rise of global trade, there is no universal currency. Every country trading goods and services faces the challenge of navigating exchange rates. It wasn't until after World War II, in the latter half of the 20th century, that modern exchange rate systems were introduced. As global trade expanded, financial systems adapted to accommodate these changes.Also Check: Types of Markets
Also Check | |
Scope of Business Economics | Partnership Accounts |
Preparation of Final Accounts of Sole Proprietors | Company Accounts |
Theory of Production and Cost | Theory of Demand and Supply |