--%>

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 trade product life cycle

    I NEED TO UNDERSTAND MORE ABOUT PRODUCTION POSSIBILITY FRONTIER

  • Q : Problem on completely employed economy

    In a completely employed economy, the higher the yield of capital goods, and the bigger its: (1) Present living standards. (2) Present output of consumer goods. (3) Growth of capacity for the future production. (4) Rates of inflation and unemployment.

  • Q : Inflow of foreign currency Determine

    Determine the factors accountable for inflow of foreign currency? Answer: a) Foreigners buying home country services and goods via exports. b) Foreigners investment in home country via joint ventures and via

  • Q : What does a deficit in balance of trade

    Deficit in balance of trade point: Deficit in balance of trade points out that the imports of good are bigger than exports.

  • Q : International portfolio investments 5.

    5. What are the factors responsible for the recent surge in international portfolio investment?

  • Q : Circular Flow model of a private economy

    The simple circular flow model of a private economy describes how income and resources flow among: (1) Households and business associations. (2) Corporations and government agencies. (3) Sole corporations and proprietorship (4) Business associations a

  • Q : Autonomous or accommodating carry

    Which transactions- autonomous or accommodating carry balance in BOP? Answer: Accommodating transactions carry balance in the BOP or balance of payment.

  • Q : Define induced investment Induced

    Induced investment: It is a type of investment that is of profit motive in nature.

  • Q : Kind of exchange rate State which kind

    State which kind of exchange rate has no official intervention in foreign exchange market? How it is recognized?

  • Q : Manegment . In 2007 and 2008 Boeing ran

    . In 2007 and 2008 Boeing ran into several publicized issues with regard to its management of a globally dispersed supply chain. What are the causes of these problems? What can a company such as Boeing do to make sure such problems do not occur in the future?