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Currency

Exchange Rate

Understanding exchange rates is crucial in the world of finance. It refers to the value of one currency in terms of another, determining the cost for exchanging them. As an example, if the exchange rate between the US dollar and the euro is 1.2, it means that one euro costs 1.2 US dollars. Exchange rates play a significant role in international trade, investments, and tourism, making it an essential concept to grasp in the field of finance.
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