--%>

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.

   Related Questions in International Economics

  • Q : Define fixed exchange rate Fixed

    Fixed exchange rate: It is the rate of exchange which is fixed by the Government in an economy.

  • Q : Techniques what are the techniques of

    what are the techniques of balance of payment?

  • 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 : Positive Balance of Payments I have a

    I have a problem with the satement “Things will look excellent for the US if we could just get to where we are consistently executing a positive Balance of Payments.” Can someone in short comment on this statement?  

  • Q : Circular flow model In simple circular

    In simple circular flow model, the only entities which finally consume goods, own resources, pay taxes or bear the loads of inflation, experience joy, or suffer pain, are as: (i) corporations. (ii) Households. (iii) Government agencies. (iv) Business

  • Q : 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.

  • Q : Current account and capital

    Differentiate among current account and capital account of balance of payment account. State any two transactions of capital account. Answer:

    Q : International portfolio investments 5.

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

  • Q : Current account of Indias Balance of

    State the items that are not involved in the current account of India’s Balance of payment. Answer: The capital transactions is in the form of direct and portf