Define foreign exchange
Define foreign exchange: It is the currency other than domestic currency.
Fixed exchange rate: It is the rate of exchange which is fixed by the Government in an economy.
suppose that an investor has an extra cash reserve of $1000000 to invest for one year. annually rate is 10%
Flexible exchange rate: The rate of exchange in terms of other currencies is determined by market forces of demand-supply.
Balance of payment Accounts: It is the systematic record of all economic transactions among the residents of a country and rest of the world in a specified period (1-year) of time.
Foreign exchange rate: The Foreign exchange rate is a price of foreign currency in terms of domestic currency.
Differentiate among current account and capital account of balance of payment account. State any two transactions of capital account. Answer: Q : Problem on International trade economy If the Chinese economy could create all goods with fewer resources per unit than are needed in US, the citizens of China would: (i) Encompass a comparative advantage in the whole thing. (ii) Be self-sufficient since there would be no potential profits from trade. (iii
If the Chinese economy could create all goods with fewer resources per unit than are needed in US, the citizens of China would: (i) Encompass a comparative advantage in the whole thing. (ii) Be self-sufficient since there would be no potential profits from trade. (iii
Managed floating rate system: This is a system in which foreign exchange rate is found out by market forces and central bank is a key contributor to stabilize the currency in condition of tremendous appreciation or depreciation.
State the items that are not involved in the current account of India’s Balance of payment. Answer: The capital transactions is in the form of direct and portf
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