(So have their teachers.) Even the Founding Fathers of our country indulged in gripe sessions. In fact, a list of grievances comprises the longest section of the Declaration of Independence; however, the source of the document's power is its firm philosophic foundation.
Not to be confused with forward rate or forward price. The forward exchange rate (also referred to as forward rate or forward price) is the exchange rate at which a bank agrees to exchange one currency for another at a future date when it enters into a forward contract with an investor.orward exchange rates have important theoretical implications for forecasting future spot exchange rates. Financial economists have put forth a hypothesis that the forward rate accurately predicts the future spot rate, for which empirical evidence is mixed.
DEFINITION of 'Exchange Rate'. The price of a nationâs currency in terms of another currency. An exchange rate thus has two components, the domestic currency and a foreign currency, and can be quoted either directly or indirectly.In a direct quotation, the price of a unit of foreign currency is expressed in terms of the domestic currency.n exchange rate that does not have the domestic currency as one of the two currency components is known as a cross currency, or cross rate. Also known as a currency quotation, the foreign exchange rate or forex rate.