Define fixed exchange rate
Fixed exchange rate: It is the rate of exchange which is fixed by the Government in an economy.
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
State the two sources of demand of foreign exchange: Import of services and goods and to acquire education in abroad.
Describe the two sources of supply of foreign exchange: The two sources of supply of foreign exchange are: Exports and foreign tourism.
The balance of payment account (BOP) account is the statement of each and every economic transaction which takes place between a nation and rest of the world throughout a particular period. BOP account generally comprises of (a) Current account and (b
Supply of foreign exchange: (A) By exports of services and goods(B) Direct foreign investment in residence country(C) For approximate purchases by non-residents in the home country(D) Remittances
5. What are the factors responsible for the recent surge in international portfolio investment?
Flexible exchange rate: The rate of exchange in terms of other currencies is determined by market forces of demand-supply.
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
safeguard against the crisis of confidence in system explain
suppose that an investor has an extra cash reserve of $1000000 to invest for one year. annually rate is 10%
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