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.
Differentiate among current account and capital account of balance of payment account. State any two transactions of capital account. Answer: Q : What is autonomous or public investment Autonomous or public investment: It is a type of investment that is not of profit motivated.
Autonomous or public investment: It is a type of investment that is not of profit motivated.
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 : Techniques what are the techniques of what are the techniques of balance of payment?
what are the techniques of balance of payment?
Which transactions find out the balance of trade? When the balance of trade is in surplus?
Define foreign exchange: It is the currency other than domestic currency.
‘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?’
Components of current account of BOP account: (A) Import-Export of goods(B) Import-Export of services(C) Unilateral transfers
Supply of foreign exchange: (A) By exports of services and goods(B) Direct foreign investment in residence country(C) For approximate purchases by non-residents in the home country(D) Remittances
If a Hawaiian can produce 50 bushels of either potatoes or pineapples per acre, whereas an Idahoan manages just 3 bushels of pineapples or 30 bushels of potatoes per acre, then: (1) Idaho’s absolute drawbacks prevent gains from specialization and exchange. (2) T
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