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.
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
Fixed exchange rate system (or pegged exchange rate system): This is a system in which exchange rate of a currency is fixed by government. This system makes sure stability in the foreign trade and capital movement.
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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
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