What is managed floating exchange rate
Managed floating exchange rate: This is a system in which the central bank or Government permits the exchange rate to identify market forces although they take decisions to intervene whenever they feel it suitable.
market structure and price-output determination
5. What are the factors responsible for the recent surge in international portfolio investment?
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 equival
If exchange rate of foreign currency downs or falls, its demand rises. Describe how? Answer: If exchange rate falls, an import become cheaper, demand for imports in
Deficit in balance of trade point: Deficit in balance of trade points out that the imports of good are bigger than exports.
Identify the key challenges to india's economic development. To what extent the second generation reforms will tackle the current challenges of india's development
Foreign exchange rate: The Foreign exchange rate is a price of foreign currency in terms of domestic currency.
Which transactions find out the balance of trade? When the balance of trade is in surplus?
Fixed exchange rate: It is the rate of exchange which is fixed by the Government in an economy.
Managed floating rate system: This is a system in which foreign exchange rate is found out by market forces and central bank is a key contributor to stabilize the currency in condition of tremendous appreciation or depreciation.
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