Define fixed exchange rate
Fixed exchange rate: It is the rate of exchange which is fixed by the Government in an economy.
State the two sources of demand of foreign exchange: Import of services and goods and to acquire education in abroad.
Flexible exchange rate: The rate of exchange in terms of other currencies is determined by market forces of demand-supply.
Determine the factors accountable for inflow of foreign currency? Answer: a) Foreigners buying home country services and goods via exports. b) Foreigners investment in home country via joint ventures and via
Explain all the approaches of Paul Samuelson.
State which kind of exchange rate has no official intervention in foreign exchange market? How it is recognized?
suppose that an investor has an extra cash reserve of $1000000 to invest for one year. annually rate is 10%
market structure and price-output determination
5. What are the factors responsible for the recent surge in international portfolio investment?
Peanut butter, jelly sandwiches and tuna fish sandwiches are replacements. Assume an international agreement decreased the worldwide catch of tuna by half. The equilibrium price of grape jelly would be: (1) Increases while the equilibrium quantity is reduced. (2) Drop
‘The country has a floating exchange rate and its inflation rate is much higher than its trading partners. Why we would suppose the country’s exchange rate to deflate?’
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