What 2 points are required to emphasis foreign exchange

What 2 points are required to emphasis foreign exchange market?

E

Expert

Verified

Two points require emphasis with respect to these markets.

1. Real world foreign exchange markets are competitive, with large numbers of buyers and sellers dealing with a standardized product, the currency of some country.

2. Exchange rates link of one country’s domestic prices with all foreign prices.  They allow you to interpret the cost of foreign products into dollars.

For example, if the dollar/yen exchange rate is 1 cent/per yen, a Sony T.V. set priced at ¥20,000 will cost an American $200 = (20,000 x .01).

   Related Questions in Business Economics

  • Q : Illustrate Other Things Equal revisited

    Illustrate “Other Things Equal” Revisited in Supply and Demand, and Equilibrium?

  • Q : Internal factors which influencing the

    Write down the internal factors which influencing the capital structure?

  • Q : Utility with food coupons Question: In

    Question: In Vancouver the Salvation Army encourages people to make food voucher donations to panhandlers instead of simply giving them cash. You can buy a food voucher for $5 and give it to a panhandler who can use it to purchase food. The Sa

  • Q : Explain about the principle of

    Economic efficiency needs that, relative to the other goods which different individuals might consume, the people who value exact goods relatively the most should own and/or use all goods. Such principle is termed as: (i) economic equity. (ii) allocat

  • Q : Answer the following questions based on

    The dataset used in this question contains data on 180 economics journals for the year 2000. The variable descriptions are as follows: logoclc - log of the number of library subscription loglibcit - log of the library subscription price per citation.

  • Q : What do you mean by Financial Linkages

    What do you mean by Financial Linkages in U.S. and World Trade?

  • Q : Favor laissez- faire economic policies

    Favor laissez- faire economic policies tended by Adam Smith, who also: (w) saw the requirement for several state intervention. (x) believed there were no conditions in which the government must intervene. (y) supported most government

  • Q : Raising consumer surplus problem For

    For the question below, utilize the given information. The market for gizmos is competitive, with an increasing sloping supply curve and a downward sloping demand curve. With no govt. intervention, the equilibrium price is $25 and the equilibrium quantity is 10,000 gi

  • Q : Introduction of the term Cost of

    Give a brief introduction of the term Cost of retained earnings?

  • Q : Determine opportunity cost of making an

    The opportunity cost of making an exact alternative is: (i) useful primarily as an indicator of relative prices. (ii) its nominal costs into terms of all other goods. (iii) the information which guides your decision. (iv) measured through the subjecti

©TutorsGlobe All rights reserved 2022-2023.