Need of foreign currency
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 contemplate on the value of foreign currencies.
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 contemplate on the value of foreign currencies.
Foreign exchange rate: The Foreign exchange rate is a price of foreign currency in terms of domestic currency.
If the Chinese economy could create all goods with fewer resources per unit than are needed in US, the citizens of China would: (i) Encompass a comparative advantage in the whole thing. (ii) Be self-sufficient since there would be no potential profits from trade. (iii
Components of capital account of balance of payment: A) Borrowing and lending to and from abroad.B) Change in foreign exchange reserves C) Investment to and from abroad.
Who was 1970 Nobel Laureate in Economics?
Who rediscovered Bachelier’s thesis?
Autonomous or public investment: It is a type of investment that is not of profit motivated.
distinguish between autonomous transactions and accommodating transactions under balance of payments
Which transactions find out the balance of trade? When the balance of trade is in surplus?
Describe the two sources of supply of foreign exchange: The two sources of supply of foreign exchange are: Exports and foreign tourism.
Describe the meaning of deficit in BOP: Whenever autonomous foreign exchange payments surpass autonomous foreign exchange receipts, the difference is termed as balance of payments deficit.
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