What is Foreign Exchange Class 12

looking for what is foreign exchange as per the syllabus of Class 12 CBSE and other state boards.

I have explained this topic in detail.

See, this topic is concerned with the Foreign Exchange rate chapter of Macroeconomics Class 12.

What Do You mean by Foreign Exchange Class 12

All countries in the world have their own currency. This currency is readily accepted within their respective territory.

For example. Indian rupees in India, Dollar in the USA etc.

But if an Indian wants to purchase goods or services from the USA. The INR would no work in this case.

He first has to convert INR into the dollar.

So for Indians dollar is foreign exchange.

In simple words, for Indian Citizens, All currency other than Indian Rupee is a foreign Exchange.

Definition of Foreign Exchange (Class 12)

Various books have offered definitions of foreign exchange.

Foreign Exchange refers to al currencies other than the domestic currency of a given country.

Sandeep Garg

Foreign Exchange refers to all the currencies other than the domestic currency of a given country.

S.K Aggarwal

Foreign Exchange refers to foreign currency

TR Jain

Examples of Foreign Exchange

For Indian Citizens, the dollar, Kuwaiti Dinar, pounds, Pakistani rupees etc., are all Foreign Exchange. In simple words, for an Indian Citizen, all other countries’ currencies except Indian INR is foreign exchange.

Similarly, for a Britisher except for the pound, all currencies are foreign exchange.