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Foreign Exchange and Currency

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Define the foreign exchange rate between two currencies. Explain its effect on business transactions conducted in a foreign currency.

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The expert defines the foreign exchange rate between two currencies. Its effect on business transactions conducted in a foreign currency are given.

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Foreign exchange rate between two companies can be defined as the amount of one currency a person can buy or see using the other currency. For example, if you have buy USD0.8 using 1 Canadian dollar, then the exchange rate is 1CAD=0.8USD. There are several ways in which you can denote the exchange rate. Direct method and indirect methods are two ways in which exchange rate can be quoted in several places.

The effect of foreign ...

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