Reading Theme:
Exchange Rate: Meaning, Examples & Usage
Meaning 1：currency conversion rate (exchange rate)
exchange rate
/ɪksˈtʃeɪndʒ reɪt/
n.
It shows how much one country's money is worth when you change it for another country's money.
currency conversion rate
➕
/ˈkʌrənsi kənˈvɜːrʒən reɪt/
n.
The exchange rate is the price at which one currency can be exchanged for another, typically determined by supply and demand in the foreign exchange market.
📘 Details & Usage
📖 Root Explanation
Latin 'ex-' + 'cambiare' + 'rata' => 'exchange rate'. Indicates currency swap value.
💡 Mnemonic
Imagine 'ex' = exit, 'change' = swap, 'rate' = ratio. So exit your money, swap it, get a ratio.
📖 Example
Before her trip to Japan, Sarah checked the exchange rate to see how many yen she would get for her dollars.
Before her trip to Japan, Sarah checked the exchange rate to see how many yen she would get for her dollars.
🔗 Collocations
floating exchange rate – a rate that changes based on market forces
fixed exchange rate – a rate set by a government or central bank
exchange rate mechanism – a system for managing exchange rates within specified limits
🔄 Synonyms
foreign exchange rate (n.) – the rate at which one currency is exchanged for another in international markets
currency rate (n.) – a shorter term for the exchange rate between two currencies
forex rate (n.) – an informal term for the exchange rate in the foreign exchange market
📖 Cultural Story
The term emerged in Medieval banking. Modern usage solidifies with the Bretton Woods system (1944), establishing fixed exchange rates.
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