Source: SOURCE: Image of British Five Pound Note Creative Commons http://www.bankofengland.co.uk/banknotes/Pages/current/security_5.aspx, Image of One Dollar Bill Creative Commons http://en.wikipedia.org/wiki/United_States_one-dollar_bill
In an exchange rate calculation, the base currency is the currency being purchased. The exchange rate provides the amount of the price currency needed in the exchange.
A unit of national exchange.
The value of one currency relative to another, exchange rate is subject to demand factors, and as a currency is more highly sought after than another, its value will appreciate or increase relative to the other.
In an exchange rate calculation, the price currency is the currency exchanged for a unit of the base currency. The exchange rate provides the amount of the price currency needed in the exchange.