--%>

Maintaining the fixed exchange rate

Explain why “Once  the capital markets are integrated, it becomes difficult for the country in order to maintain the fixed exchange rate”. 

E

Expert

Verified

Once the capital markets are internationally integrated, large amount of money can flow in and out of the country within the short time period. This can make it really difficult for country to maintain the fixed exchange rate.

   Related Questions in Financial Accounting

  • Q : Advance methods which are used in banks

    What are the advance methods which are used in banks presently?

  • Q : Prepare the journal entry to record the

    The Webster Company uses the aging method to estimate the allowance for doubtful accounts. The following schedule of accounts receivable was prepared as at December 31, 20x6: Age Balance % uncollectible 0-30 days $674,000 0.5% 31-60 days 186,000 1.2% <

  • Q : What is the equivalent rate A bank

    A bank quotes an interest rate of 13.5% per annum with quarterly compounding. What is the equivalent rate with (a) continuous compounding and (b) annual compounding?

  • Q : Use of balance of payments Why it would

    Why it would be useful to examine a balance of payments of the country data?

  • Q : Fundamental characteristics of

    State the fundamental characteristics of bureaucracies.

  • Q : Explain the term Insolvent Explain the

    Explain the term Insolvent in brief associating to debt?

  • Q : PPE The following information is taken

    The following information is taken from the financial statements of an entity: 20x4 20x3 Property, plant and equipment $4,600,000 $4,200,000 Accumulated depreciation (1,800,000) (1,350,000) Depreciation expense 560,000 Gain on disposal of PPE 65,000 The asset disposed of had a cost

  • Q : Define Factitious Assets Factitious

    Factitious Assets: When any asset that has no market price which asset is termed as factitious assets. This is illustrated as expenditures of capital expenditure. The main illustration of such factitious assets is: Preliminary expenses, discount on is

  • Q : What is Bank errors What is Bank errors

    What is Bank errors. Briefly define it with respect to Accountancy?

  • Q : Accounting and Financial Management

    Part A During 2012 the Australian Company Woolworths Ltd (WOW) sold its subsidiary business called Dick Smith Electronics. Within 8 months of the FOR SALE sign going up Anchorage bought the Dick Smith Business for $20 million. This is the same amount Woolworths Ltd bought