Exchange Rate 

Source: Encyclopedia of Banking & Finance (9h Edition) by Charles J Woelfel
(We recommend this as work of authority and you can order it here)                  

The price at which one country’s currency can be exchanged for another.  The value of the exchange rate, like any other price, is determined by the interaction of supply and demand in the foreign exchange market.  Changes in the economic activity of any one country will affect that country’s exchange rate with all other currencies.

Exchange rates can be expressed in terms of foreign currency per U.S. dollars, or in terms of U.S. dollars per unit of foreign exchange.  One expression is simply the reciprocal of the other.  Listed in the table below are selected foreign exchange rates.  Current rates are published daily in the Wall Street Journal and are often posted in major financial institutions.

BIBLIOGRAPHY

PICK, P.  World Currency Yearbook.  Annual.

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