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.
Supply of foreign exchange: (A) By exports of services and goods(B) Direct foreign investment in residence country(C) For approximate purchases by non-residents in the home country(D) Remittances
Managed floating exchange rate: This is a system in which the central bank or Government permits the exchange rate to identify market forces although they take decisions to intervene whenever they feel it suitable.
Flexible exchange rate: The rate of exchange in terms of other currencies is determined by market forces of demand-supply.
Explain the Economic environment in Australia and Internationally and their factors which affect them?
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.
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The balance of payment account (BOP) account is the statement of each and every economic transaction which takes place between a nation and rest of the world throughout a particular period. BOP account generally comprises of (a) Current account and (b
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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