--%>

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 exchange market.

   Related Questions in International Economics

  • Q : Economics Hi Can you give estimate for

    Hi Can you give estimate for this assignment please look at attachment page no for questions, book for case studies as in pdf. Assignment2: Page no 52 Assignment3:Case Analysis 74 Assignment4:Case analysis-98 Mini-99 Assignment5: Case analysis-122 Assignment6:Paper-126-127 Most the infor

  • 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 : International monetary system safeguard

    safeguard against the crisis of confidence in system explain

  • Q : How is the exchange rate influenced by

    ‘The country has a floating exchange rate and its inflation rate is much higher than its trading partners. Why we would suppose the country’s exchange rate to deflate?’

  • Q : Why Demand for foreign exchange is made

    Demand for foreign exchange is prepared to: (A) Purchase services and goods (B) Send gifts and funding(C) Speculate the value of foreign currencies, (D) Invest and procure financial assets

  • Q : Write short notes on autonomous

    distinguish between autonomous transactions and accommodating transactions under balance of payments

  • Q : Equilibrium price of grape jelly problem

    Peanut butter, jelly sandwiches and tuna fish sandwiches are replacements. Assume an international agreement decreased the worldwide catch of tuna by half. The equilibrium price of grape jelly would be: (1) Increases while the equilibrium quantity is reduced. (2) Drop

  • Q : Define balance of payment or BOP

    Balance of payment: It is a systematic record of each and every economic transaction of a country with the rest of world in an accounting year.

  • Q : Tourism services to tourist-Balance of

    In which account of balance of payment tourism services to tourist are involved? Answer: Tourism services to tourist are comprised in current account of Balance of

  • Q : Problem on International trade economy

    If the Chinese economy could create all goods with fewer resources per unit than are needed in US, the citizens of China would: (i) Encompass a comparative advantage in the whole thing. (ii) Be self-sufficient since there would be no potential profits from trade. (iii