00:01
Basically, we're going to be looking at the nominal exchange rate.
00:09
Nominal exchange rate.
00:17
Before we can look at the definitions that are given, we might just need to look at an analysis or instance where the rate is determined by the interaction of supply and demand that you would find in a free -flooring exchange rate regime.
00:38
So if you have, for instance, on the vertical axis the price of the british pound in terms of us dollars, then you have the quantity of the british pound on the horizontal axis, you can actually determine that the price of the in us dollar terms will be $1 .50.
01:10
So what it basically means there, that because of the interruption of supply and demand, the british pound can then be, the exchange rate can actually be written as one pound is equal to one us, i mean $1 .50, $1 .50.
01:34
That will be the the nominal exchange rate...
