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.
China is a huge manufacturer of technology of telephone devices. It has lately become a member of W.T.O. that means it can sell its products in other member countries such as India. Assume that it does export a big number of telephone instruments to India:
Who was 1970 Nobel Laureate in Economics?
Flexible exchange rate: The rate of exchange in terms of other currencies is determined by market forces of demand-supply.
Which transactions find out the balance of trade? When the balance of trade is in surplus?
Autonomous or public investment: It is a type of investment that is not of profit motivated.
Foreign exchange rate: The Foreign exchange rate is a price of foreign currency in terms of domestic currency.
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.
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 : Write short notes on autonomous distinguish between autonomous transactions and accommodating transactions under balance of payments
distinguish between autonomous transactions and accommodating transactions under balance of payments
Balance of payments (BOP) always balances. Describe it. Answer: Balance of payments is for all time balanced. The negative balance on current account is equated wit
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