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About Docs99
Expertise
any related to economic analysis and evolution of the economy

Experience
20+ years in financial services and economic analysis. Teaching experience at grad level

Education/Credentials
MPA from Harvard University
Degree in Economics

 
   

You are here:  Experts > Arts/Humanities > Social Science > Economics > currency value difference

Economics - currency value difference


Expert: Docs99 - 5/20/2009

Question
Hi,
  I livining in india.One US dollor is 42 indian rupee.How the difference comming?explain me in simple & with example.

Answer
The exchange rate is the price of one currency in terms of another currency. Basically, the exchange rate for a currency comes from a relationship between the monetary base --domestic currency--- and the amount of reserves in hard currencies and precious metals in the monetary authority.  Hope this helps.

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