Define fixed exchange rate
Fixed exchange rate: It is the rate of exchange which is fixed by the Government in an economy.
Flexible (or floating) exchange rate system: This is a system in which exchange rate is found out by forces of demand and supply of the foreign currencies concerned in the foreign exchange market. There is no official interference in the foreign excha
Foreign exchange rate: The Foreign exchange rate is a price of foreign currency in terms of domestic currency.
If exchange rate of foreign currency downs or falls, its demand rises. Describe how? Answer: If exchange rate falls, an import become cheaper, demand for imports in
The U.S. economy is an instance of a system characterized by: (1) Mixture of different aspects of various economic systems. (2) Strictly decentralized the decision making process. (3) Centralized ownership of resources. (4) Political decisions regarding all allocative
Describe the two sources of supply of foreign exchange: The two sources of supply of foreign exchange are: Exports and foreign tourism.
Who was 1970 Nobel Laureate in Economics?
Calculate the value of imports, if the net imports are of Rs 160 crores and the value of exports are of Rs 400 crores.
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
Induced investment: It is a type of investment that is of profit motive in nature.
State which kind of exchange rate has no official intervention in foreign exchange market? How it is recognized?
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