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.
Flexible exchange rate: The rate of exchange in terms of other currencies is determined by market forces of demand-supply.
Calculate the value of imports, if the net imports are of Rs 160 crores and the value of exports are of Rs 400 crores.
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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
Why foreign currency or exchange is required? Answer: a) To buy services and goods from other countries. b) To send a gift abroad. c) To buy financial assets in a specific country and d) To contem
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
Examining US–Canadian imports-exports and analyzing a call to protect the US lumber business.
Peanut butter, jelly sandwiches and tuna fish sandwiches are replacements. Assume an international agreement decreased the worldwide catch of tuna by half. The equilibrium price of grape jelly would be: (1) Increases while the equilibrium quantity is reduced. (2) Drop
State the two sources of demand of foreign exchange: Import of services and goods and to acquire education in abroad.
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