Share This Article:

Economic Definition of exchange rate. Defined.

Offline Version: PDF

Term exchange rate Definition: The price of one nation's currency in terms of another nation's currency. This is often called the foreign exchange rate in that it is the price determined in the foreign exchange market when people buy and sell foreign exchange. The exchange rate is specified as the amount of one currency that can be traded per unit of another.


« exchange rate mechanism | aggregate demand determinant exchange rates »


Alphabetical Reference to Over 2,000 Economic Terms