Need of foreign currency
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 contemplate on the value of foreign currencies.
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 contemplate on the value of foreign currencies.
State the two sources of demand of foreign exchange: Import of services and goods and to acquire education in abroad.
When Balance of payment of a country is Rs (-) 100 crores and total payment are Rs 500 crores. Determine its total receipts.
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.
State the items that are not involved in the current account of India’s Balance of payment. Answer: The capital transactions is in the form of direct and portf
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