Define Managed floating rate system
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.
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
Deficit in balance of trade point: Deficit in balance of trade points out that the imports of good are bigger than exports.
State which kind of exchange rate has no official intervention in foreign exchange market? How it is recognized?
‘The pound has enhanced today on the foreign exchange market’ is a general media comment whenever the pound sterling appreciates. When the pound appreciates is it always excellent news for business and the economy?’
‘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?’
What challenges are facing lone mill mine and what strategies can be used
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.
Autonomous or public investment: It is a type of investment that is not of profit motivated.
Fixed exchange rate: It is the rate of exchange which is fixed by the Government in an economy.
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