Define fixed exchange rate
Fixed exchange rate: It is the rate of exchange which is fixed by the Government in an economy.
Differentiate among current account and capital account of balance of payment account. State any two transactions of capital account. Answer: Q : Circular Flow model of a private economy The simple circular flow model of a private economy describes how income and resources flow among: (1) Households and business associations. (2) Corporations and government agencies. (3) Sole corporations and proprietorship (4) Business associations a
The simple circular flow model of a private economy describes how income and resources flow among: (1) Households and business associations. (2) Corporations and government agencies. (3) Sole corporations and proprietorship (4) Business associations a
Question 1 Household Tools Co. is a manufacturer of microwave ovens. The manufacturer wants to increase the shelf life of their products. Past records indicate that the average shelf life of their microwave ovens is 240 days. After a new line of microwave ovens has been d
Which transactions find out the balance of trade? When the balance of trade is in surplus?
Can someone help me in determining the right answer from the given options. The economic growth in a country is least possible to occur as a result of: (1) Advances in the technology (2) Rises in rates of saving and investment. (3) Enhancements in its
what are the techniques of balance of payment?
Deficit in balance of trade point: Deficit in balance of trade points out that the imports of good are bigger than exports.
distinguish between autonomous transactions and accommodating transactions under balance of payments
‘Can foreign exchange markets be analyzed in similar manner as the markets for ordinary physical commodities? Do demand slope downwards and supply slope upwards for currencies?’
Assume that many people are willing and capable to pay greater than production costs for certain goods however pervasive shortages exist. International agreements or domestic laws and policy are most likely key factors if we consider sustained scarcities in ma
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