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.
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Fixed exchange rate: It is the rate of exchange which is fixed by the Government in an economy.
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State the two sources of demand of foreign exchange: Import of services and goods and to acquire education in abroad.
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‘Can foreign exchange markets be analyzed in similar manner as the markets for ordinary physical commodities? Do demand slope downwards and supply slope upwards for currencies?’
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