Kind of exchange rate
State which kind of exchange rate has no official intervention in foreign exchange market? How it is recognized?
Expert
The Flexible exchange rate has no official intervention. This is recognized by the interaction of demand and supply in the foreign exchange market.
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
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.
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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.
Autonomous or public investment: It is a type of investment that is not of profit motivated.
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Explain all the approaches of Paul Samuelson.
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