--%>

Influence of demand in exchange rate

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 increases and therefore increases the demand of foreign exchange to buy more imports.

   Related Questions in International Economics

  • Q : International portfolio investments 5.

    5. What are the factors responsible for the recent surge in international portfolio investment?

  • 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 : What is autonomous or public investment

    Autonomous or public investment: It is a type of investment that is not of profit motivated.

  • Q : Who was 1970 Nobel Laureate in Economics

    Who was 1970 Nobel Laureate in Economics?

  • 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 : Why Supply of foreign exchange is made

    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

  • 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 : Exchange rates-a question of demand and

    ‘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?’

  • 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 : Joining the euro-the effect on the

    ‘How is the equilibrium £:€ exchange rate presently determined? When UK was aiming to adopt the euro in the next to future we would be predicted to ‘shadow’ the euro for a while (the £:€ exchange rate would change merely among v