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ID number:575205
Evaluation:
Published: 19.05.2006.
Language: English
Level: Secondary school
Literature: n/a
References: Not used
Extract

Exchange rates play a key role in the relationships between individual economies within the context of the global economy, as all trade and financial flows between nations are mediated through exchange rates. With respect to Australia, the foreign exchange rate is simply the price at which the domestic currency exchanges for another foreign currency, and the conversion of these currencies takes place on the FOREX market where through market forces of demand and supply, buyers and sellers determine the equilibrium exchange rate price. …

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