Understanding Exchange Rates:
- Exchange rates are the rates at which one currency can be exchanged for another currency.
- They are determined by the supply and demand of the currencies in the market.
- Understanding exchange rates is important for businesses and individuals who participate in international trade or travel.
How Exchange Rates Fluctuate:
- Exchange rates fluctuate based on the supply and demand of the currencies in the market.
- Factors that can affect exchange rates include economic conditions, political events, and interest rate differentials.
- Understanding how exchange rates fluctuate can help businesses and individuals make informed decisions when participating in international trade or travel.