Skip to main content
Chapter 14 of 19
Flashcards

Foreign Exchange Rate

ICSE · Class 12 · Economics

Flashcards for Foreign Exchange Rate — ICSE Class 12 Economics. Quick Q&A cards covering key concepts, definitions, and formulas.

70 questions40 flashcards5 concepts

Interactive on Super Tutor

Studying Foreign Exchange Rate? Get the full interactive chapter.

Quizzes, flashcards, AI doubt-solver and a step-by-step study plan — built for flashcards and more.

1,000+ Class 12 students started this chapter today

40 Flashcards
Card 1Meaning of Foreign Exchange

What is foreign exchange?

Answer

Foreign exchange means all currencies other than the domestic currency of a country. For India, US Dollar, British Pound, Kuwaiti Dinar, Pakistani Rupee, and other foreign currencies are foreign excha

Card 2Meaning of Foreign Exchange Rate

What is the rate of exchange?

Answer

The rate of exchange is the price at which one currency is exchanged for another currency. It shows the value of one currency stated in terms of another currency. Example: $1 = ₹60 or ₹1 = 1/60.

Card 3Meaning of Foreign Exchange Rate

What does foreign exchange rate show about a currency?

Answer

Foreign exchange rate shows the external value of a currency. It expresses how much of another currency can be obtained for one unit of a currency.

Card 4Depreciation and Appreciation

Define depreciation of a currency.

Answer

Depreciation is a fall in the free market value of domestic currency in terms of foreign currency under a flexible exchange rate system. It happens due to market forces, not government action. Example

Card 5Depreciation and Appreciation

Define appreciation of a currency.

Answer

Appreciation is a rise in the free market value of domestic currency relative to foreign currencies under a flexible exchange rate system. It happens due to market forces. Example: $1 = ₹62 changes to

Card 6Devaluation and Revaluation

What is devaluation?

Answer

Devaluation is a government action to decrease the value of domestic currency relative to foreign currencies under a fixed exchange rate system. Example: $1 = ₹60 changes to $1 = ₹62 through official

Card 7Devaluation and Revaluation

What is revaluation?

Answer

Revaluation is the official action of the government to appreciate the external value of its currency under a fixed exchange rate system. Example: $1 = ₹60 changes to $1 = ₹55 through official action.

Card 8Comparisons of Currency Value Changes

Differentiate depreciation and devaluation.

Answer

Depreciation is a market-driven fall in the value of domestic currency under flexible exchange rates. Devaluation is a deliberate government action to reduce the value of domestic currency under fixed

+32 more flashcards available

Practice All

Frequently Asked Questions

What are the important topics in Foreign Exchange Rate for ICSE Class 12 Economics?
Foreign Exchange Rate covers several key topics that are frequently asked in ICSE Class 12 board exams. Focus on the core concepts listed on this page and practise related questions to build confidence.
How to score full marks in Foreign Exchange Rate — ICSE Class 12 Economics?
Understand the core concepts first, then work through the 70 practice questions available for this chapter. Revise formulas and definitions regularly, and use flashcards for quick recall before the exam.
How many flashcards are available for Foreign Exchange Rate?
There are 40 flashcards for Foreign Exchange Rate covering key definitions, formulas, and concepts. Use them daily for 10–15 minutes for best results.

Sources & Official References

Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.

For serious students

Get the full Foreign Exchange Rate chapter — for free.

Quizzes, flashcards, AI doubt-solver and a step-by-step study plan for ICSE Class 12 Economics.