Examlex
This can only be seen when the sun is to your back and it is raining in front of you:
Purchasing Power Parity
A theory which states that exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries.
Exchange Rate
The price of one country's currency in terms of another currency, determining how much foreign currency can be exchanged for a unit of domestic currency.
Spot Trade
A transaction for the immediate delivery of a financial instrument or commodity.
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