Cost of a foreign currency
When cost of a foreign currency increases its supply too increases. Elucidate why?
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When exchange rate rises, this will make domestic country’s goods cheaper to foreigners. The demand for our exports will increase. It entails more supply of the foreign exchange.
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Meaning: - as mentioned above, the balance of payments is a periodic accounting of international economic transactions. Each country having regular economic transactions with other countries prepares periodically the final accounts of their foreign receipts and paymen
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