Influence of supply in exchange rate
If exchange rate of foreign currency downs or falls its supply too falls. Elucidate how? Answer: If exchange rate downs or falls, experts become less gainful therefore supply of foreign currency via exports falls.
If exchange rate of foreign currency downs or falls its supply too falls. Elucidate how?
Answer: If exchange rate downs or falls, experts become less gainful therefore supply of foreign currency via exports falls.
5. What are the factors responsible for the recent surge in international portfolio investment?
distinguish between autonomous transactions and accommodating transactions under balance of payments
Components of capital account of balance of payment: A) Borrowing and lending to and from abroad.B) Change in foreign exchange reserves C) Investment to and from abroad.
Deficit in balance of trade point: Deficit in balance of trade points out that the imports of good are bigger than exports.
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
‘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?’
The French phrase ‘laissez-faire’ almost translates as: (1) Enjoy your leisure. (2) Let the buyer be cautious. (3) All other things held steady. (4) Leave us alone. (5) Labor is a source of all the value. Q : International portfolio investments 5. 5. What are the factors responsible for the recent surge in international portfolio investment?
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.
China is a huge manufacturer of technology of telephone devices. It has lately become a member of W.T.O. that means it can sell its products in other member countries such as India. Assume that it does export a big number of telephone instruments to India:
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