Define induced investment
Induced investment: It is a type of investment that is of profit motive in nature.
Foreign exchange rate: The Foreign exchange rate is a price of foreign currency in terms of domestic currency.
Balance of payment Accounts: It is the systematic record of all economic transactions among the residents of a country and rest of the world in a specified period (1-year) of time.
Why foreign currency or exchange is required? Answer: a) To buy services and goods from other countries. b) To send a gift abroad. c) To buy financial assets in a specific country and d) To contem
‘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?’
Flexible exchange rate: The rate of exchange in terms of other currencies is determined by market forces of demand-supply.
5. What are the factors responsible for the recent surge in international portfolio investment?
‘The pound has enhanced today on the foreign exchange market’ is a general media comment whenever the pound sterling appreciates. When the pound appreciates is it always excellent news for business and the economy?’
Who was responsible for setting the tone for following generations of economists?
‘Can foreign exchange markets be analyzed in similar manner as the markets for ordinary physical commodities? Do demand slope downwards and supply slope upwards for currencies?’
safeguard against the crisis of confidence in system explain
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