NCERT Solutions for Class 12 Macro Economics Foreign Exchange Rate

NCERT Solutions for Class 12 Macro Economics Foreign Exchange Rate

NCERT Solutions for Class 12 Macro Economics Foreign Exchange Rate is designed and prepared by the best teachers across India. All the important topics are covered in the exercises and each answer comes with a detailed explanation to help students understand concepts better. These NCERT solutions play a crucial role in your preparation for all exams conducted by the CBSE, including the JEE.

NCERT TEXTBOOK QUESTIONS SOLVED

1. What is foreign exchange?[CBSE AI 2011, 04]

Ans. Foreign exchange refers to all the currencies of the rest of the world other than the domestic currency of the country. For example, in India, US dollar is foreign exchange.

2. What is meant by foreign exchange rate? [CBSE 2004,05,06,09 2011, Sample Paper 2010]

Ans. The rate at which one currency is exchanged for another is called foreign exchange rate.

3. What is meant by foreign exchange market?

Ans. Foreign exchange market is the market where foreign currencies are bought and sold.

4. Define flexible exchange rate system.[CBSE 2008]

Ans. Flexible exchange rate system refers to a system in which the exchange rate of different currencies is determined by the forces of demand and supply in foreign exchange market.

5. The price of 1 US Dollar has fallen from Rs. 50 to Rs. 48. Has the Indian currency appreciated or depreciated?[CBSE Sample Paper 2010]

Ans. Indian currency has appreciated.

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