--%>

Supply of foreign exchange

Explain how foreign exchange rate is determined beneath flexible exchange rate system.

Beneath flexible exchange rate system, the equilibrium exchange rate is found out where demand for foreign exchange is equivalent to the supply of foreign exchange.

Demand for foreign exchange = Supply of foreign exchange.

   Related Questions in International Economics

  • Q : International product life cycle I NEED

    I NEED TO UNDERSTAND MORE ABOUT International product life cycle

  • Q : Indian economic what are the key

    what are the key callenges to indian economic development

  • Q : Scarcities in International markets

    Assume that many people are willing and capable to pay greater than production costs for certain goods however pervasive shortages exist. International agreements or domestic laws and policy are most likely key factors if we consider sustained scarcities in ma

  • Q : Why Supply of foreign exchange is made

    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

  • Q : Current account of Indias Balance of

    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

  • Q : Free trade Analyse free trade and

    Analyse free trade and discuss the role of international organisattions in regulating trade between countries. How the control of trade has impacted positively or negatively on a company of your choice

  • Q : Gasoline market-Demand and supply

    Let us suppose that US gasoline market has the demand and supply curvesQd = 10 – 0.5PdQs = -2 + Ps when Ps ≥ 2 and Qs = 0 if Ps < 2,

    Q : Current account and capital

    Differentiate among current account and capital account of balance of payment account. State any two transactions of capital account. Answer:

    Q : Define foreign exchange rate Foreign

    Foreign exchange rate: The Foreign exchange rate is a price of foreign currency in terms of domestic currency.

  • Q : What is Flexible exchange rate system

    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