Exchange rates-a question of demand and supply
‘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?’
Expert
Making an understanding of the foreign exchange markets by thinking the application of demand and supply analysis and then the problems which occur in this market.
Balance of payment: It is a systematic record of each and every economic transaction of a country with the rest of world in an accounting year.
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
5. What are the factors responsible for the recent surge in international portfolio investment?
Autonomous or public investment: It is a type of investment that is not of profit motivated.
Deficit in balance of trade point: Deficit in balance of trade points out that the imports of good are bigger than exports.
Describe the two sources of supply of foreign exchange: The two sources of supply of foreign exchange are: Exports and foreign tourism.
Examining US–Canadian imports-exports and analyzing a call to protect the US lumber business.
Which transactions- autonomous or accommodating carry balance in BOP? Answer: Accommodating transactions carry balance in the BOP or balance of payment.
State the two sources of demand of foreign exchange: Import of services and goods and to acquire education in abroad.
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
18,76,764
1942598 Asked
3,689
Active Tutors
1423240
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!