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Overview of subject
Any study that deals with either averages or aggregates that look on whole of the economy namely, employment in total income that happened nationally, overall consumption, all savings, collective demand and supply of a country.
Defining Exchange rate
By the simplest form of understanding, rate of exchange is one currency price that is expressed in terms of currency for other. The value of a currency changes time to time. Thus, it becomes important to know the exchange rates of those times when a country is making trades with other respective countries. This is also needed for the currency rates of different country very differently. Under such mechanism of international system of payments, all conversion is done through a market of foreign exchange.
Exchange rates have an adverse effect on both global and international trade and so does increases imports and all exports too. As all foreign money is bought and sold in Forex market, rates are also determined by them only. The positive point is that it does not have any geographical boundaries.
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