--%>

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?’

E

Expert

Verified

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.

   Related Questions in International Economics

  • Q : Inflow of foreign currency Determine

    Determine the factors accountable for inflow of foreign currency? Answer: a) Foreigners buying home country services and goods via exports. b) Foreigners investment in home country via joint ventures and via

  • Q : Circular flow model In simple circular

    In simple circular flow model, the only entities which finally consume goods, own resources, pay taxes or bear the loads of inflation, experience joy, or suffer pain, are as: (i) corporations. (ii) Households. (iii) Government agencies. (iv) Business

  • Q : Who won the Nobel Prize for Economics

    Who won the Nobel Prize for Economics in 1997?

  • Q : Define flexible exchange rate Flexible

    Flexible exchange rate: The rate of exchange in terms of other currencies is determined by market forces of demand-supply.

  • Q : Balance of trade Which transactions

    Which transactions find out the balance of trade? When the balance of trade is in surplus?

  • Q : Accounts in Balance of Payments or BOP

    Name the accounts in the balance of payments (BOP)? Answer: a. Current account: It exhibits the imports and exports of services and goods and transfer payments.b. Capital Account: It exhibits the assets and li

  • Q : How Balance of payments always balances

    Balance of payments (BOP) always balances. Describe it. Answer: Balance of payments is for all time balanced. The negative balance on current account is equated wit

  • Q : Indian economic what are the key

    what are the key callenges to indian economic development

  • Q : What is Flexible exchange rate system

    Flexible (or floating) exchange rate system: This is a system in which exchange rate is found out by forces of demand and supply of the foreign currencies concerned in the foreign exchange market. There is no official interference in the foreign excha

  • Q : Why Demand for foreign exchange is made

    Demand for foreign exchange is prepared to: (A) Purchase services and goods (B) Send gifts and funding(C) Speculate the value of foreign currencies, (D) Invest and procure financial assets